Insurance Issues For Entrepreneurs
When first starting a business, the one thing that a lot of entrepreneurs overlook is getting adequate insurance. When you are just starting out, it really does not seem all that important to worry about insurance. As a matter of fact, you are probably not even thinking about it. But it is important to understand some of the points about insurance with which every entrepreneur should be familiar. Here are the five top insurance issues to consider:
1. Using Your Home For Business
We are all aware that homeowners insurance is a necessity because we know we need to protect our biggest asset, our home. But there are homeowners insurance policies that will not cover business activities in your home. And, if your policy does have coverage, be sure it is not capped at an amount that is too low.
If you are currently managing your business from your home, it is important to be sure you completely understand what is really covered by your policy. You need to be certain that your homeowners policy will cover all of the business activities that will take place in your home, including your office, are covered. It might be necessary to buy more coverage if your standard homeowners policy does not have enough protection.
2. Health Insurance (Especially in the United States)
Having health coverage really is a big deal, especially in the United States. That is because when you leave your current employer and go out on your own you will probably find yourself without insurance coverage. At the beginning of your entrepreneurial journey it is important not to put your business at risk with large bills for medical care. Of course, health insurance will not completely cover you for high bills but it can definitely reduce the impact those bills might have on your business. But keep in mind that when you become self-employed you will not have health benefits in the United States. It will be up to you to provide your own coverage. Luckily, entrepreneurs who are in the United States will be able to deduct their premiums from their taxes.
You might still need the coverage of private insurance even if you are in Canada depending on what your needs are. So be sure to check that your coverage is appropriate no matter where you are located.
3. Coverage for Liability
You might need liability coverage depending on what risks your business will be taking. This might be coverage if a visitor is injured on your property or while you are operating your business. But liability coverage covers more than just physical injuries. If you are a professional you may need protection from lawsuits. For example lawyers, doctors and other entrepreneurs might need that liability coverage. If you need it, you will be able to buy liability coverage that will protect your business and provide reputation management. So you should at least consider protecting your business with some liability coverage.
4. Coverage for Vehicles
Depending on your business, you might need vehicles to run the company. If you are using vans, trucks, cars or other vehicles in your business, they need to be covered properly. In the same way that your standard homeowners policy might not cover all of your business uses, you may not be able to count on your standard automobile policy to cover those activities that are relate to business use.
Check into what has to be done to make sure all of your business vehicles have proper coverage. In most cases, it is a good idea to specify which vehicles you will be using for business so you don’t mix personal and business use. But, if that is not possible, talk to your insurance agent about how to manage the problem. In addition to covering your vehicles, you also need to make sure any employees operating the vehicles have enough coverage. Do not let anyone drive one of your vehicles until you are sure that person has proper coverage.
5. Life Insurance
Making sure that you have enough life insurance is an absolute necessity. If you decide to go with online quotes for life insurance you will be able to get very good rates. But don’t be like some entrepreneurs and ignore the need for life insurance. Remember that it is this coverage that will protect your family. If something were to happen to you, will your family be able to survive financially?
Also make sure to keep track of all your insurance coverage and raise it as your business expands. Even if you begin with only a small amount of coverage, you will probably need to increase it later. If you don’t make sure your coverage reflects current needs and the fact that your business is becoming more successful, you will be underinsured. Always keep in mind that your family is reliant upon your income and you always need to protect their future. So your growing business might require more life insurance and you should keep updating your coverage as time goes by.