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[COLUMN] What type of insurance do you need for your business —

John Schnobrich FlPc9 VocJ4 Unsplash
Photo by John Schnobrich on Unsplash

Starting a business is no joke. It’s not for everyone. If anyone says starting a business is a walk in the park, they are lying to you. From idea to implementation, the journey involves many moving parts. Many questions to be answered and intense planning required. Some examples of questions to ask during the initial stages are: Are you going to have a storefront, or are you going to do e-commerce only? Will you be a solopreneur, or will you hire help right away? What type of marketing will you be doing? Do you need a website, logo, trademark, patent, and the list goes on.

Once a business is off the ground, more work and more questions arise. Who to hire, how to train, when to start hiring, what payroll to use, where to bank, do you LLC or S Corp and more decisions that need to be made.

When it comes to insurance. There are a few essential types you’ll want to be familiar with:

  1. General liability insurance – It protects against bodily injury or property damage claim caused by your business. Example 1: Slip and fall at your store. It indemnifies the injured party if business is found liable. Example 2: If your worker went on a home visit and damaged the client’s property, this policy could cover damage to the other party’s belongings.
  2. Workers compensation – It is mandatory in most states. It provides benefits to workers if they sustain work-related injuries or illnesses. Example: A deli worker accidentally cut his fingers while preparing a sandwich for a customer. This policy can provide treatment costs and lost wages.
  3. Commercial property – It helps protect your building, equipment and furniture that you own or rent. Example: If there is fire or theft, this policy can replace your property against covered losses.
  4. Commercial umbrella – This provides an extra layer of liability protection on top of your other underlying liability coverage. Basically, it kicks in when the liability coverage for your other policy is exhausted. Example: Judgment of an auto claim against your company is $1.5 million and say your auto policy only has $1 million. The remaining $500k will come from the commercial umbrella subject to policy provisions.
  5. Professional Liability/Errors and Omissions – It covers claims of errors arising from professional services provided by your business. E.g. You are a beautician, and you made a mistake by putting wrong chemicals on the client’s hair or face, which injured the client. If they sue, this policy can cover legal fees and payment to the injured party.
  6. Commercial car – It covers your company car as well as property damage and bodily injury type claim. Example: Your staff is behind another car while running errands for work. The insurance covers the claim to repair or replace the other car, the company car as well as injury to the other party subject to the limits of coverage chosen.
  7. Business Office Policy Insurance or BOP – this is the most common requirement as it covers commercial property, general liability policy and loss of income amongst other things.

There are more insurance policies that an entrepreneur may need such as Cyberspace Liability, Identity Theft, Employment Practices Liability, Bond, etc. The list could go on. A trusted insurance advisor can guide you through these choices.

They say being an entrepreneur is like going through a roller coaster ride every day. There seems to be no “pause button”. There is constant action and reaction. Every day brings new challenges and excitement. It involves a lot of risk, courage, foresight as well as sweat and the obvious need for financial capital to name just a few. Although owning a business is challenging, it is also one of the most rewarding things to accomplish. There is a certain badge of pride associated with it.

So, while starting a business may seem like a daunting task. Don’t be discouraged. When it comes to insurance, choosing the right agent can simplify things for you. They can also help give you options and help determine what your business really needs. Let the insurance expert do the heavy lifting and help guide you. Look for someone you can trust who has been around for a long time, because experience matters. You’ve already put up with so much running your business, let the right coverage be as painless as possible. Put your mind at ease with an agent who knows and cares. Visit us at Email for questions or a free, no-obligation quote.


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Melody Avecilla is an insurance expert. Her one-stop shop agency has been a preferred access insurance resource for over a decade. She holds a Master of Business Administration from Loyola Marymount and earned her CLU (Chartered Life Underwriter) designation from The American College. Her team has been named the best in the industry for years in a row. Fun fact about her. She holds several patents for the world’s first retractable high heels. In between work, she hosts a global leadership podcast called “dreamers to leaders”. She takes a hyper-focused approach to enhancing customer experience in running her businesses. Insurance is her flagship business. (Advertisement Supplement)

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