When a person decides to start out on a business venture, it may be because it is a great way to increase their money making potential. Unlike working for somebody else, a person who runs their own business is able to be their own boss and increase their earning capacity. Even with these advantages, there are also many risks involved in starting a new company. There is always the risk of not generating enough revenue or even worse, not being able to recover the initial investment in the business. If a company will have employees, there is a risk of work-related injuries. The possibility also exists that some of the assets of the business could be damaged due to a natural disaster. A new company usually requires an office, so an entrepreneur should consider a Dallas office lease.
To protect their assets, a new business also needs to secure commercial insurance to protect their assets.
Types of Commercial Insurance
- Property Insurance – Business insurance is designed to insure all company related assets including the building where it is located and the furnishings, such as tables, desks, chairs and other office equipment. Property insurance can include coverage for specific types of risks such as earthquakes, floods, tornadoes, etc. Keep in mind that if certain assets of the company are damaged that are not included in the insurance plan, then those losses will not be covered. For leased assets, such as those in a Dallas office lease building or office equipment, the renter must provide insurance for that equipment.
- Liability Insurance – When running any type of business, there is always the possibility of employees committing negligence, malpractice, and other errors in the services provided by the company. Having liability insurance will insure the business against any liability in cases where someone sues the business for negligence.
- Business Interruption Insurance – Sometimes, unforeseeable events could interrupt business activities for days, resulting in a disruption of cash flow and profits, which could eventually lead to huge losses. Business interruption insurance is designed to insure businesses and cover losses when such events occur.
- Commercial Vehicle Insurance – Company vehicles require commercial auto coverage insurance. This will insure the company’s vehicles against property damage caused by any type of accident.
- Worker’s Compensation Insurance – When a company employs several workers, it is important that the business be covered by worker’s compensation insurance. This insurance is mandatory and will insure employees against job-related injuries. Employees will be compensated for any injuries incurred while on the job as well as payment of any medical bills or other damages as a result of the work injury.
- Health Insurance – Some companies opt to provide health insurance for their employees which helps attract good workers. The health insurance provides benefits to the employees in the event they become ill or for annual wellness check-ups.
- Life and Disability Insurance – Having life and disability insurance in place provides benefits to employees should they become disabled or in the event of their death.
These are some of the common types of business insurance available. Keep in mind that not all insurance policies are equal, so it is important to carefully choose the various types of insurance that are suitable for the needs of the business. Take time to review the different types of insurance policies and weigh their advantages and disadvantages. Assess the types of insurance policies that are crucial to the needs of the business. Consult with other companies in a similar field and get their recommendations. Work with an insurance professional to develop an insurance plan for the company. As the business grows and its priorities evolve, review the insurance plans to ensure they still meet the needs of the business.
Starting a business can be financially risky, which is why it is crucial to look at the various types of commercial insurance available for a Dallas office lease to help eliminate some of the risks!