Do I need insurance for my business if I am renting a building or office?

Ha!  That’s a silly question, of course you do.  If there was a fire, what would happen to your business?  Chances are you would lose the necessary tools to run your business resulting in financial loss and possibly permanent closure your business.   The reason you get insurance is to cover you financially for unforeseen losses.   

Here are the main things to considering when looking at insurance for your business:  Property, Liability, Employee’s, Vehicle, and Data Compromise.

Property includes things like equipment, furnishings, merchandise, and any other property you may have.  Property insurance (depending on your policy) may even cover you for equipment breakdown and debris cleanup.

Liability insurance covers you for any type of lawsuit.  That could be a client that trips over a cord while visiting your office, a child that is hurt while using a product you produced, or even errors or negligence.  Doctors are required by state law to carry malpractice insurance.

If you have employees than you may be required by law to have workers compensation insurance, check with your state.  You may even want to consider employment practices insurance as it will cover you in the event an ex employee files a groundless claim.

Business vehicle insurance is different than your personal auto insurance.  If you drive clients around or have a company vehicle you will want to look further into this as personal auto insurance doesn’t cover business transportation.  Uber drivers be aware that once you click the uber app, your personal auto insurance no longer covers you.

Data compromise can be pricey with both legal obligations and repair.  Luckily there is data compromise insurance that will cover these costs just in case your employee or clients information is stolen or accidentally released.

Finally, to those of you that work from home, homeowner insurance typically does not cover business related losses.  So,  it maybe a good idea to look into a business insurance policy.  

In addition to the above coverages, your business might have additional things to consider.  A conversation with your business insurance agent can help you determine your how best to protect your business.