Starting your own business is always risky, at the same time it is exciting. Despite the amount of competition out there in seemingly every market, adventurous entrepreneurs are willing to take the risks and try to reap the potentially vast rewards. This is admirable, however where a number of startup companies go wrong is they fail to make sure their businesses are adequately covered against unexpected risks that could have devastating effects. In fact, a worrying amount of new businesses owners still assume they’re simply covered under their standard home insurance policies. That is simply not true. Here’s what you need to know about business insurance.
When Home Insurance Won’t Cut It
While it’s not uncommon for home insurance providers to also include protection for business owners that are based out of home, basic coverage often restricts claims of any meaningful value. They also omit beneficial features such as protection against damage that occurs on business trips or any defense against potential liability claims. If your company requires some high-end technological equipment, or you keep your product inventory at your home, you’ll see that even a small startup can quickly start to amass value that runs into the tens of thousands.
Don’t Cut Corners
To properly ensure that your company is protected, don’t try to cut any corners. Any savings you make could come back to haunt you in the long-run. You should be looking for cover against property damage and liability at a minimum. The former affects everything from the structure that supports your home to the valuables residing within it. Public or employee liability cover can be used to help you pay for any legal fees that could occur if someone were to get injured, or worse, get injured on your premises.
Taking out a business owner’s policy from a specialist like AXA will provide you with both of these types of coverage. This agreement will also provide you with some off-premises protection, including liability cover for the products you sell or the services you provide. If live in an area that is prone to extreme weather effects like flooding or storms, you should also consider taking out additional insurance policies here to protect you. Depending on your specific industry, there are many types of individual policies that you may feel are essential to your line of work. Whatever your business, it’s critical that you examine the risks and weigh their likelihood against the additional costs.