Starting a new business takes a certain amount of bravery. Even with the most innovative idea, it takes courage and commitment to turn your idea into a reality. Often you have to secure funding, money which all has to be returned, quit your current job and put everything on the line. Given that a large number of small businesses fail within their first year of operating; the risks are enormous so its important that you protect yourself with the right insurance in place from the outset. If you’re still on the fence and are of the mindset that insurance is just for unusual events, think again as a recent study found that 40% of small businesses will incur a period of liability loss within the next 10 years. Here are some of the insurance policies that you should consider having in place.

General Liability Insurance

Small business liability insurance is crucial to protecting yourself from third party claims.  It covers bodily injury, damage to property and copyright infringement. You need this protection for your business if you interact with clients face to face, have access to clients property, use any kind of advertising for your business, use third party locations for business purposes or enter into contracts that require you to have liability insurance in place.

Property Insurance

It doesn’t matter if you own or lease your business premises, the chances are the space you are running your business from, along with the contents within it, represent your biggest asset and should therefore be protected. Property insurance covers equipment, signage, and in the case of storm, fire or theft your inventory, and furniture, are covered.

Workers Compensation Insurance

The moment your first employee has signed on the dotted line, you will need workers compensation insurance. Even if your employee is sitting behind a desk all day and you consider their role to be low risk, there are many ways that a claim can take place. This insurance covers you for medical treatment, disability and death benefits. It is always best to err on the side of caution and have a solid policy in place for your workers.

Product Liability Insurance

If you intend to sell a product that you have manufactured, then you will need product liability insurance regardless of how safe you deem your product to be. You can get coverage which is tailor made to your specific product so in the event your product is named in a lawsuit you can rest assured you are covered by your insurance.

Vehicle Insurance

Your company vehicles must be fully insured to protect your business against liability if an accident occurs.  Fully comprehensive insurance is recommended, although if employees are using their own cars for your business, their own personal insurance will cover them.

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Business Interruption Insurance

In the event of a disastrous event which directly results in your staff’s inability to work, your business will be interrupted and you will suffer lost income as a result. Business interruption insurance will protect you against these unforeseen events.