Starting a business means taking a risk – one that can have significant rewards. Fortunately, certain types of insurance can help protect your business, and reduce the risk you assume when you become your own boss. Here are a few types insurance you may want to consider:

Business owners’ policy

A business owners’ policy (BOP) can cover liability risks, and property risks, such as fire, lightning, vandalism, and theft. It may also reimburse you if your business is temporarily shut down.

Workers’ compensation

If you have employees, you’re required (in all states except Texas) to buy workers’ compensation insurance. With this coverage, an employee injured at work will receive wage replacement income and reimbursement for medical expenses.

Commercial auto

If you use an automobile for business purposes, your personal auto insurance may not cover you in an accident. A commercial auto insurance policy can help cover liability costs resulting from accidental damage.

Professional liability

Also known as errors and omissions (E&O) insurance, professional liability coverage will help protect you from financial loss due to alleged malpractice or negligence claims. This is especially important if your business provides certain types of personal services, such as a medical practice or a counseling firm.

Home-based business

If you run your business from your home, your homeowners insurance may not cover your business property or business liability. To protect your business, it may be smart to take out a policy specifically for your home-based business.

Key employee insurance

If one of your most crucial employees dies or becomes disabled, life and disability insurance can help cover the financial losses to your business that may accompany the disruption.

Purchasing insurance protection can help you feel more confident that the business you build will survive short-term setbacks and continue to grow for years to come.

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