There are a few business insurances that other companies will ask for. There may be other insurances that may be need for the business but the main ones are listed. It is also important to know the terms of the insurance policy to know what is covered.
SUMMARY
- Insurance is an extra cost that is paid but depending on the type of product sold, there should be some level of insurance.
- Be sure to make sure insurance at least covered for all high risk parts of the business, this may include lawsuits and damage to property.
COMMERCIAL GENERAL LIABILITY INSURANCE
General liability insurance is the basic insurance that will cover the business needs. It is important to make sure the insurance policy covers for as much of the business as possible including products, property, and lawsuits caused by the products. In the case something happens, be sure to check if the event is covered by insurance instead of taking on the liability directly.
UMBRELLA LIABILITY INSURANCE
Umbrella insurance is an additional insurance that covers the business needs, where in some cases it is not covered by the commercial general insurance. This is needed because the commercial general liability insurance may exclude certain events from the insurance or the amount of liability is not covered by the insurance.
WORKERS COMPENSATION INSURANCE
Workers compensation insurance is for the employees of the business rather than the property or products. The insurance covers employees in cases where there are any injuries or ill-nesses related to work. This may be more important once the time comes to start hiring on more employees, especially if they are doing work that is prone to injuries.