Do I need to buy separate insurance before starting a new business?
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Asked November 10, 2014
Some businesses are required to have liability insurance by law. Even those that are not required to carry business insurance should consider having it, because the coverages in a standard Business Owners Policy can easily mean the difference between success and becoming a forgotten company that fell to the wayside.
Business liability insurance protects you against any type of liability related to your business. For some companies, that mean injuries or damages caused during the course of business, others are protected against incidents involving company equipment, and still other companies are protected against such claims as negligence, poor workmanship, and more.
In addition to liability insurance, a BOP might include inventory protection. This type of coverage would protect you against product defects, loos of product through expiration, and such things as loss of inventory due to power outages or other losses.
Loss of Business insurance is also available in a BOP. This type of coverage has many advantages for a company, including the ability to pay employees and recoup losses when your company is unable to function after a covered event such as the historic winter storms that have recently affected the Northeastern United States.
In some states and municipalities, business insurance is required in order for you to be licensed for operation. In those cases, you will need to consult the related laws of your state of operations. If you plan to offer services in more than one state or locality, it is vital to know what your insurance requirements in every place that you offer services. Whether you are required to have it or not, business insurance is a practical necessity that should not be ignored.
Answered November 10, 2014 by Anonymous