When you begin your own business it is important that you include business insurance in your start up plan. It is important that you protect your assets with insurance and there are many types to consider. You need protection from all types of possible losses. This can range from auto insurances, key man insurance, liability, and asset protection insurance. You may need all of the aforementioned or maybe just one or two of them but here we will give you a brief overview of each type so you can decide whether you need to check further into them.
If you have any automobiles that are drive by for work related trips it is important that you are properly insured. If you are involved in an automotive related accident having your vehicle insured can really protect your other assets. This is especially true if you are carrying enough coverage. My personal feeling is that businesses that have any assets at all should have a policy with an absolute minimum coverage of 300,000/100,000. This means that your insurance company will pay out a total of $100,000 per person involved in the accident with the most per accident being $300,000. This type of coverage will hopefully allow you to settle with all involved and keep them from coming after your other assets.
Key Man insurance is usually held on the person that is the biggest asset to the company, hence the name “key man.” This is a life insurance policy that if this person were to die you would receive money to help your company stay afloat while trying to find a replacement or liquidating the company. This money can cover everyday business expenses such as mortgage payments or help you keep your payroll running smoothly during this unfortunate transition period.