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Business Insurance for Entrepreneurs: Here’s What You Need to Know

Jun 14, 2023

Business Insurance

Business Insurance for Entrepreneurs: Here’s What You Need to Know

Launching a new business requires plenty of energy and capital to make it happen smoothly. Many new entrepreneurs often overlook the obstacles that can get in the way of business growth, and then they learn the hard way from costly mistakes, accidents, and lawsuits. The easier path is starting out with the proper business insurance for entrepreneurs.

Table of Content

Do Entrepreneurs Need Insurance?

Any entrepreneur who wants to earn a substantial amount of money from a business should purchase enough liability coverage to protect their assets. You probably don't want someone chasing after your personal savings over a lawsuit. Any public establishment runs the risk of attracting a visitor who slips and gets injured on the property. The right business insurance will leave your personal wealth out of the equation.

What Coverages Do Entrepreneurs Need?

Getting the appropriate business insurance for entrepreneurs depends on the type, size, and location of a business. Here are the main plans that apply to a broad range of businesses:

  • General Liability Insurance - You need this coverage to pay for bodily injury or damage to the property of third parties if accidents occur at your establishment, or if someone is injured by your products. In case your firm is sued, this coverage pays for legal costs.

  • Workers Compensation - Employees who get into accidents on the job are covered under this plan for medical bills and lost wages.

  • Business Income Insurance - This coverage pays for loss of revenue when you must temporarily shut down the operation. 

  • Commercial Auto Insurance - Your business vehicles must be covered with proper auto insurance to meet your state's minimum liability requirements.

  • Commercial Property Insurance - This coverage protects your equipment and inventory from losses that may occur from natural disasters, theft, and vandalism.

  • Data Breach Insurance - In the digital age, businesses that store sensitive data need the right insurance in the event of a data breach.

  • Professional Liability Insurance - Your team needs this coverage for protection from personal lawsuits in the event their advice leads to losses.

What Is the Best Insurance for Entrepreneurs?

A Business Owners Policy (BOP) is often the best fit for an entrepreneur due to its convenience as an all-in-one solution. It's often the best solution for getting the most coverage at the lowest cost, provided you already bring low risks to the table.

How Much Does Insurance for Entrepreneurs Cost?

The main factors that affect insurance costs for entrepreneurs include company location, staff size, and the type of commercial property. Coverage limits will also come into play based on risks. Entrepreneurs with good credit and minimal claims history tend to have the widest set of options available to them.

Cover Your Entrepreneurial Business Today with Tompkins Insurance Agencies

Before you rush into opening a new business, be aware of the risks and the costs, both of which pertain to insurance. Every entrepreneur should be well aware of their insurance options prior to entering the market. Contact our team at Tompkins Insurance Agencies for more information on how to save money on business insurance for entrepreneurs.

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