Starting a small business tends to center around understanding the legal aspects of the new venture. You need to know how to structure your company and which licenses you need to operate in a lawful manner. Once you have these matters situated the next order of business is getting insurance. Property coverage is important, and liability protection is vital, but there are two additional less talked about types of insurance that you should also add to the roster. Keep reading to get a description of these forms of insurance so you can see why they are so essential.
1. Key Person Insurance Keeps The Company Rolling
As a small business owner, you are basically the central figure behind the entire operation. Although you might have a small staff in place, you are still the most important person in the building. If you were to perish by becoming ill or a sudden accident, how would the business stay afloat? Key person insurance coverage is there to provide coverage should something happen to you so that your business won't go under.
Key person coverage provides monetary protection if you aren't able to fulfill your role in the business. The insurer will pay out a pre-designated amount to the company so that the person who is next-in-charge is able to find another person to take your place. It's basically a life insurance policy on the key player in the business that lists the business as the entity that will receive the benefit upon your death. The insurance provides much-needed funds that can keep the vision alive in your absence.
2. Business Interruption Protection Is A Lifesaver
What would happen if a fire ripped through your building and destroyed nearly everything in its wake? Although your property insurance might provide the money for you to recover your equipment and rebuild the structure, how are you going to make up for the time that you lost while trying to rebuild?
When you are unable to produce and can't sell products to clients, you are losing money. The business interruption coverage fills in the gaps by issuing the money necessary to make up for the funds that you may have lost while you were trying to repair the damage caused by a covered event.
Putting together a comprehensive insurance policy gives you peace of mind. Add these coverages to your policy, and you should be ready for nearly anything that could happen during the regular course of business.
For more information, contact a company like Welsh Insurance Agency Inc.Share