5 Value-Added Business Insurance Coverages for New Businesses

Jan 11, 2023

Business Insurance

Business Insurance Coverages for New Businesses

Many new companies may think insurance is not mandatory for them, especially when they just begin operating or have few employees/clients. However, unfortunate incidents can happen to any business, at any time. Theft/destruction of business equipment, third-party claims, or loss/damage caused by natural disasters can wreak havoc on your business, interrupting its operations, and resulting in financial losses. This is why it is crucial to buy business insurance coverage.

Here are five essential coverages that every new business must have:

  1. Commercial Auto Insurance

    Whether you use one or two vehicles for commercial reasons or have a large fleet of business-owned vehicles, you need commercial auto insurance to stay protected against:

    • At-fault accidents and collisions that lead to third-party property damage and bodily injury.
    • Potential liabilities and financial losses when your vehicle is stolen, vandalized or damaged by natural disasters.
    • Accidents caused by drivers with limited or no liability coverage.
    • Your and your passengers’ medical expenses incurred from an accident.
  2. Commercial Property Insurance

    Commercial property insurance is essential to protect your building and its contents, such as tools, equipment, inventory, computers, signs, and electronics, against damage or loss caused by:

    • vandalism
    • storms
    • falling objects
    • theft/break-ins
    • fire
    • lightning
    • wind/hail
    • explosion.

    It also covers damage to your personal property used for business operations and reimburses income loss while your commercial building is being restored after a covered peril.

  3. Workers Compensation Insurance

    Workers’ compensation insurance helps protect your business against work-related accidents (slips, lacerations, falls, explosions, and fire incidents) and resulting financial liabilities, including:

    • injured employees’ medical expenses
    • lost wages
    • funeral expenses (in fatal incidents).

    Besides, it pays for your court fees, attorney fees, and other settlement costs if you are sued for workplace incidents.

  4. Business Owners Policy

    A business owners policy offers three much-needed commercial coverages in one convenient package, including:

    • Commercial Liability Coverage - Protects your business against advertising injuries and third-party bodily injuries/property damage that occurs on your premises or is caused by your workers, products, or operations.
    • Commercial Property Coverage - Covers damage/loss to personal property used for business purposes, rented/owned/leased business assets, and third-party’s property under your care or custody.
    • Business Interruption Coverage - Reimburses lost income and other expenses (rents, loans, and employee wages) while your business is temporarily closed due to a loss or damage caused by a covered peril.
  5. Professional Liability Insurance

    Professional liability insurance covers your business against lawsuits resulting from:

    • Mistakes/ errors and omissions
    • missed deadlines,
    • breach of contract,
    • negligence,
    • undelivered services

    It pays for the resulting costs of a lawsuit, such as lawyer fees, court costs, and settlement costs. Any business that provides professional service or advice to clients/customers and offers contractual services should buy professional liability coverage.

    With these coverages, you can ensure the continuity and stability of your business while saving on out-of-pocket expenses in the event of a loss/damage.

    Keep Your Business Ahead of Risks with Spotlight Insurance

    At Spotlight Insurance Agency, we have the right yet affordable coverage options to protect your new business always against every possible industry-specific risk. Contact us today to get started on your customized business insurance coverage.

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