3 Types of Insurance You Need for Your Business
Choosing the right insurance for your business is an important decision. How your business is structured, such as a corporation or LLC, determines the type of protection your business has. When you register your business, you will need to choose how to structure it, which will determine factors such as tax rate, required licenses and liability protection. Most business owners will consider purchasing additional insurance, beyond what is required by state law. There are a few types of insurance that are beneficial to all businesses.
Workers’ Compensation Insurance
Since each state has its own laws regarding workers’ compensation, you may need to hire a lawyer who specializes in Iowa workers compensation law to ensure that you have the necessary coverage. Workers’ compensation insurance can cover expenses such as medical expenses incurred as a result of a workplace injury, an employee’s missed wages or rehabilitation expenses.
General Liability Insurance
Covering a range of circumstances, general liability insurance can help cover losses due to injury, property damage, legal expenses from lawsuits and losses due to libel and slander. General liability insurance can also cover your business if your employee damages a client’s home while on the job.
Commercial Property Insurance
Property insurance is a must for business owners with a physical building and assets, including a home-based business. This type of insurance covers damage to your building, inventory and assets such as computers, furniture and personal property. Covered damages are usually from a natural disaster, such as fire, hail or lightning. In addition, damages from a burglary or vandalism are often covered. Some property insurance policies may even cover your income loss if you are unable to reopen.
Finding the right insurance for your business requires time and careful research but is necessary for peace of mind and for protecting the lifelong investment in your livelihood.