I previously addressed the question of disability insurance in my article “Your Company and Disability Planning” on June 20, 2012. In addition to disability insurance for the owner and/or employees, a business should consider other forms of insurance as a part of its operation. Of primary importance is general liability and business operations coverage which addresses normal liabilities such as accidents and property damage. This kind of insurance can also cover important papers, employee theft, and can potentially cover lost revenue if there is an accident or event that forces the business to stop during repairs. If you are operating out of your home, you still need to obtain business insurance as most home policies exclude business activities from their coverage. Another coverage, depending on your business, is professional liability coverage. This covers errors and omissions due to negligence in the practice of professional responsibilities. When employees come into play, workers compensation and unemployment insurance become necessary.
When starting a business, one should consult with an insurance agent to address the potential policies available to make sure that they are in a good financial position concerning the risks that a business involves.