When you start a business, you have many decisions to make. What entity will you choose? Do you need a commercial space? Will you hire employees? What will be the terms of your operating agreement? While each decision gets you closer and closer to successful operations, you might not take time to consider every necessary issue, such as insurance.
Having the right insurance is critical for companies of any type of size. Most businesses need multiple types of insurance, and the specific types will depend on the operations and risk in question, as well as the location of the business. Some examples of policies you might need include the following:
Some companies might get by with general liability insurance, however, it is imperative to recognize when additional insurance is necessary. The real problems for a business arise when something goes wrong, and the company does not have the right insurance policy to cover it.
The above can happen in different ways. For example, a disaster such as a fire or an earthquake can occur when it is least expected. A business may not have adequate property insurance to cover the leased space and make the necessary repairs. If operations are interrupted, a lack of coverage can result in substantial losses that a company may never recover. These are only some of many examples of why recognizing the necessary coverage for your company is so critical.