Starting up a business is both an exhilarating and harrowing experience as you turn what has been months and years of preparation, saving, and dreaming into a reality. No one knows better than you how fragile a business is in its infancy, and soon you hope to discover the gaps that are created as your business expands. Founding a business takes a ton of time and effort from yourself and those who support you, make sure to protect your investment so it can become the business you dreamed of.
Types of Coverage
According to the federal Small Business Administration, within the first year 2 out of 10 business will fail. By year five 5 out of ten business fail—dissolving, declaring bankruptcy, or sold off to cover their losses. There are many reasons a business can fail, and some of them are surprising: from the top down due to poor leadership and money management, to failures due to rapid expansion. During these formative years another silver bullet to your company is unexpected expenses. Having your company, assets, and employees insured helps cover this risk, as well as protect against liability for your fledgling business.
Asset Protection
From manufacturing to online services, a lot of your capital is tied up in physical things, from the place you set up office to the things you do your job with. Various forms of Property Insurance can protect your business, and even if you’re leasing the space you need to insure the contents. In the event of losses to these assets, this insurance will reimburse you, saving you from what would otherwise be a sudden end to your company.
Liability Protection
While lawsuits are a headache for large companies, they are a nightmare for small ones. Not only is a recently started company unable to afford the legal fees alone, but with less structure, policies, and untried equipment and manufacturing your chances of being brought to court (or being prayed on by con artists) is much higher than established businesses. Making sure you’re protected against these lawsuits – liability – is critical, either as a standalone policy or part of a Business Owner’s Policy.
Workers’ Compensation
Do you have employees? Beyond paying them, having employees carries with it several legal obligations and liabilities. If you have employees, you need to have Workers’ Compensation insurance: this isn’t debatable but legally required and enforced by the US Government. Want to learn more? Read our blog covering the details, include Massachusetts state laws on Worker’s Comp: Employer and Employees: Workers Compensation.
As the business owner, your company stands or falls on your leadership and vision – but you’re not alone. Talk to the experts at the TJ Woods Insurance Agency about your business, and we’ll provide you with the necessary insurances, bundles, and free quotes on costs of the best New England Insurance for your business. Contact us today to learn more, including insurance for commercial vehicles, as well as personal insurance for your home, car, and beyond.
