Whether you’re opening a new business or maintaining an ongoing venture, you have to make sure you have the proper insurance. Insurance is what protects your company from economic failure.
When your company is exposed to liability, such as a lawsuit, it’s important that you have insurance in place to protect your interests. For example, if you get sued by someone who falls on your property, you’ll need to rely on your property insurance.
There are also certain types of insurance you need to maintain as a matter of law. Any company that employs more than three (3) people needs to maintain workers compensation insurance. This is not optional.
It’s a good idea to open up all your necessary insurance policies when you first open your business, It’s also important that you do an annual inventory of your current policies to see if they need to be updated or increased.
There are seven major types of insurance you want to maintain in order to protect your business and yourself. It would be wise to rely on the services of an experienced business lawyer to handle this for you.
Why Do You need Proper Professional Liability Insurance?
This type of insurance protects your company from costly mistakes. It’s sometimes referred to as errors and omissions. It also insulates you from liability for your company’s failure to perform certain tasks.
Certain industries contain hidden risks. Make sure you talk to your insurance carrier about special coverage. For example, if your company transports dangerous chemicals, you’ll want to make sure your coverage applies to things like chemical spills.
You Must Maintain Adequate Property Insurance
Whether you own or rent your space, you’ll want sufficient property insurance. This type of coverage will make sure you’re reimbursed for losses of things like furniture, inventory, signage, and equipment should you experience a fire or other disaster.
Most property insurance policies do not cover mass destruction such as an earthquake or flood. Talk to your business lawyer about securing specific and additional coverage for these types of damage.
You Have to Provide Workers Compensation Insurance
If any of your employees get hurt on the job, they’ll file a worker’s compensation claim. You’re required to maintain this insurance for the benefit of your employees. It provides both medical treatment and replacement wages for employees who are legitimately hurt at work.
Certain companies are exempt from carrying workers comp insurance. However, the exceptions are few and far between so you don’t want to make any assumptions. Err on the side of caution and arrange for workers comp insurance for your business.
What about Home-Based Businesses?
Some people think you don’t need separate insurance if you work out of your home. This isn’t true. You’ll still have the equipment, inventory, and furniture to protect. Your homeowner’s insurance will not cover these things.
You and your business lawyer in Connecticut can take a look at what your equipment and inventory may be worth. If it’s more than a nominal amount, you’ll want to secure separate property insurance for your home office.
Car Insurance is a Must
It’s important that you carry auto insurance for your company vehicles. You may use these vehicles for client visits. You may also have delivery personnel who operate these vehicles. Regardless of the purpose, you need to maintain adequate auto insurance for your company-owned vehicles.
If you have employees who use their own cars for business tasks, their insurance will not be sufficient. Personal auto insurance policies aren’t going to cover business-related accidents. Your Connecticut business law attorney can help you decide which vehicles need to be covered and which do not.
Don’t Skimp on Business Interruption Insurance
One of the most important types of business insurance you need is business interruption insurance. This is similar to mortgage insurance. If for some reason, your business suffers a significant interruption, this insurance will reimburse you for your losses.
The levels of coverage you choose should depend on the size and nature of your business. You also want to research the likelihood of an interruption taking place in your business. Sit down with your Connecticut business attorney and see which type of coverage will work best for your company.
Contact a Business Law Attorney in Connecticut
No matter the size of your business, you’ve no doubt invested your life savings into it at some point. Therefore, it’s important that you protect your livelihood and your investment. Call and schedule a consultation with an experienced business law attorney in Connecticut. You can discuss your proper insurance needs and how best to meet them.