Starting a business can be exciting – from developing an idea, building a team, and launching your product or service to the world. But no matter how great your idea is, insurance should always be top of mind for new entrepreneurs. Protecting yourself and your business from unexpected risks is essential if you want to avoid any financial or legal headaches down the road. In this blog post, Attorney Tommie Harsley discusses some important insurance tips for early-stage business owners – so that you can concentrate on what’s really important: growing your venture!
Starting A Business: Insurance Tips By Attorney Tommie Harsley
1. Business-Interruption Insurance: According to Attorney Tommie Harsley, business interruption insurance provides coverage to businesses that suffer a financial loss due to circumstances outside of their control, such as natural disasters, terrorism, or power outages. This type of insurance can help protect the business’s income and cover any additional costs incurred when operations are suspended, including payroll expenses and loan payments. Additionally, it covers lost profits caused by the disruption in business operations and helps the company recover more quickly by providing cash flow assistance during the transition period.
2. Property Insurance: Property insurance protects businesses from losses due to theft, damage to buildings, or other property-related damages which could potentially interrupt daily operations. It typically includes protection for fixtures, furniture, and inventory components owned by the business and coverage that protects against cyber-attacks.
3. Liability Insurance: Liability insurance covers a business in the event of claims made against it on the grounds of negligence or wrongdoing that lead to bodily injury or property damage. This type of insurance provides protection for legal fees associated with such cases, as well as compensation to settle any claims made by an injured party. It is particularly important for businesses with hazardous materials on site or activities that increase the risk of injury to visitors or employees.
4. Product Liability Insurance: Product liability insurance is designed to protect businesses from damages caused by any product they manufacture, distribute, or sell. This type of policy covers medical expenses incurred by a consumer due to the use of the product, as well as legal fees associated with any lawsuit brought against the business. Product liability insurance is especially important for businesses that produce and sell products to consumers, such as food, clothing, and electronics.
5. Professional Liability Insurance: Professional liability insurance covers businesses from financial losses due to errors or omissions made by their employees. This type of policy, as per Attorney Tommie Harsley, provides protection for a wide range of professional services, including accounting, consulting, legal advice, healthcare services, or IT support. It also helps protect businesses from claims of negligence or malpractice should they be sued by one of their clients due to an employee’s mistake or omission.
Attorney Tommie Harsley’s Concluding Thoughts
Starting a new business requires careful planning and consideration when it comes to protecting yourself and your company from potential financial losses. According to Attorney Tommie Harsley, investing in the right type of insurance can provide invaluable protection for your business and give you peace of mind knowing that you are covered should any unforeseen circumstances arise. By understanding the different types of insurance available, as outlined above, entrepreneurs can create a tailored plan that meets their unique business needs and helps ensure they are well-equipped to handle any situation that may come their way. This is especially true when it comes to product liability insurance; having this type of coverage helps businesses protect themselves from significant legal costs related to defective products and allows them to focus on their bottom line.