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Shop confidently - 14-day no-hassle return policy
Shop confidently - 14-day no-hassle return policy
We’ve all had those moments where we’re laying in bed long after we should have fallen asleep and are doing all we can to find the sweet relief of drifting off - only to have a thought that sends a shot of adrenaline through your veins and forces your eyes to pop open wide.
What if someone steals my business name? Should I hire an attorney to trademark it for me?
What if a client decides not to pay me? What will I do?
Am I supposed to have some kind of business insurance? Is that even a thing? Is it required? Am I breaking the law?!
Whether or not your business is required to have insurance (and the types of insurance required) depends on whether or not you have employees, and also can vary by state, so you’ll want to be sure to check with the laws in your state. However, even if you live in a state that doesn’trequire business insurance, we still recommend that you have some in place.
If you own a home, home insurance is required by law and by whoever funded your mortgage. If you rent a house or apartment, it’s most likely in your rental agreement that you’re required to have renter’s insurance. And because these are required, we make sure we’re covered. But truth be told, we all probably sleep a little better at night knowing that we’re covered. Which is why we recommend that you protect your business just like you do your home.
General Liability Insurance is one that all businesses should have in place. This type of business insurance covers you when lawsuits are filed by anyone outside of your company (like a client or customer) claiming bodily injury, property damage, advertising injury, or harm to a reputation. Should there be a lawsuit, this type of insurance typically covers legal defense and settlement costs, if there are any. And if there are medical bills due to injury on your property, those may be covered as well.
While General Liability Insurance is the type of business insurance we recommend most, Errors & Omissions Insurance is a close second. Errors & Omissions Insurance covers you if a client sues you with claims of negligence or failure to perform your services adequately. If you provide services or advice, are a consultant, web developer, or digital marketer, this is a type of insurance you may want to heavily consider.
There is also Tech Errors & Omissions Insurance which is designed for businesses that develop or provide technology products or services. It protects against claims of professional errors, negligence, or failures in technology solutions, software development, or IT consulting services.
While we highly recommend General Liability Insurance and Errors & Omissions Insurance for all businesses, if you have employees there are three types of business insurance that the United States Federal Government requires you to have. Those are worker’s compensation, unemployment, and disability insurance.
Workers’ comp provides benefits to employees who suffer work-related injuries or illnesses. It covers medical expenses, lost wages, and rehabilitation costs, while also protecting businesses from employee lawsuits related to workplace injuries.
Unemployment Insurance ensures that employees who are laid off or lose their jobs through no fault of their own have access to financial assistance while they search for new employment. It also helps protect your business from potential liability associated with unemployment claims.
Disability Insurance helps to provide financial protection to employees who are unable to work due to illness or injury by replacing a portion of their income. Your coverage may offer short-term and long-term disability coverage.
Related Post: Top 6 Mistakes To Avoid When Starting An LLC
Once you’re covered with general insurance, and you’ve covered your bases as far as what’s required by law, there are still other types of business insurance that you may want to consider.
Property Insurance covers physical assets such as buildings, equipment, inventory, and furniture in case of damage or loss due to events like fire, theft, vandalism, or natural disasters.
Business Interruption Insurance - This helps to replace lost income and cover ongoing expenses if your business is forced to close temporarily due to a covered event, such as a fire or natural disaster. Since online businesses rely on internet connectivity and digital infrastructure, they are vulnerable to disruptions such as server outages, website crashes, or cyberattacks that could interrupt operations. Business interruption insurance can help replace lost income and cover ongoing expenses during periods of downtime caused by covered events.
Commercial Auto Insurance - If your business uses vehicles for work purposes, commercial auto insurance provides coverage for accidents, property damage, and liability claims involving company-owned vehicles.
Cyber Liability Insurance - With the increasing threat of cyberattacks and data breaches, cyber liability insurance helps protect businesses from the financial losses and liabilities associated with data breaches, hacking incidents, and other cyber threats. It typically covers expenses related to data recovery, legal costs, notification requirements, and customer credit monitoring.
Directors and Officers Insurance- Protects directors and officers of a company from personal losses if they are sued for alleged wrongful acts in their roles. It covers legal expenses, settlements, and judgments resulting from lawsuits against company executives.
Product Liability Insurance- Businesses that manufacture, distribute, or sell products should consider product liability insurance. It provides coverage for legal costs and damages associated with claims of injury or property damage caused by a defective product.
Employment Practices Liability Insurance - Protects businesses from claims related to employment practices, such as wrongful termination, discrimination, harassment, or wrongful employment practices.
E-commerce Insurance - Designed to protect online businesses that sell products or services over the Internet. It may include coverage for product liability, third-party property damage, or bodily injury, and protection against lawsuits related to online transactions, such as fraudulent chargebacks or payment disputes.
Intellectual Property Insurance - Provides coverage for legal expenses associated with defending against claims of infringement, as well as damages awarded in intellectual property lawsuits.
Data Breach Response Insurance - In addition to cyber liability insurance, online businesses may consider data breach response insurance, which provides coverage for the costs associated with responding to and managing a data breach incident. This may include expenses related to forensic investigations, customer notifications, credit monitoring services, and public relations efforts to mitigate reputational damage.
Content Liability Insurance - Online businesses that generate or publish digital content, such as blogs, videos, or social media posts, may face liabilities related to defamation, libel, or copyright infringement. Content liability insurance provides coverage for legal expenses and damages arising from claims of content-related offenses.
Regulatory Compliance Insurance - Online businesses operating in regulated industries, such as finance, healthcare, or e-commerce, may require insurance coverage to address regulatory investigations, fines, or penalties resulting from non-compliance with industry regulations or data protection laws.
Those are a lot of types of insurance, and you won’t need all of them. In fact, you may be able to find policies that cover a variety of types of insurance in one. We recommend that you consult with an insurance professional to assess your risks and determine the right coverage for your specific business.
And, while you’re making sure that you’re crossing all of your “t’s” and dotting all of your “i’s”, be sure to download our free checklist that covers all of the steps you need to take to protect your business. Whether you’re a brand new business owner working to save yourself from future headaches, or you’re a seasoned veteran in the business world ensuring that you’re legally maintaining your business, this checklist has you covered!
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