When an entrepreneur starts a business, he usually exposes himself to a lot of risks. Even before he hires his first employee, the business is already at risk. It is important that you have the right insurance in place for this. A catastrophic event or lawsuit can wipe out any small business before it gets off the ground. Luckily, a business now has access to a lot of insurance types so that they will have protection against these dangers. Here are the types of insurance that a business should have in place as soon as they can.

2. It is also known as E&O or Errors and Omissions insurance
that covers a business against claims of negligence that came
from mistakes and the failure to perform. No policy fits all
sizes in professional liability insurance. Every industry has
their concerns that a customized plan written for the
business needs to address.

3. This insurance is a must if a business owns or leases space. It
will cover the furniture, inventory, signage and equipment in
case of theft, storm or fire. However, events of mass
destruction such as earthquakes and floods are usually not
covered by the standard property insurance policies. If you
live in a place that is prone to these issues, check with your
insurer so they can give you a quote for a separate policy.

4. Once you hire an employee, you should add worker's
compensation insurance to the business insurance policy. It
will cover disability, medical treatment, and death benefits in
case an employee becomes injured or dies because of his
work with the firm. Even employees who perform low-risk
work may experience slip-and-fall injuries and medical
conditions like carpal tunnel syndrome that may result in an
expensive claim.

5. A lot of professionals start their small business in their
homes. Unfortunately, most homeowner's policies do not
cover home-based businesses in the same way as
commercial property insurance. If you are operating your
business from home, ask for additional insurance from your
insurer to cover your inventory and equipment in case a
problem occurs.

6. Product liability insurance is a must for a business that
manufactures products for sale to the general market. Even if
the company takes every possible measure to make sure
their products are safe, they might find themselves in a
lawsuit because of damage that one of their products may
cause. Product liability insurance protects a business in these
cases and provides coverage that undergoes individual
tailoring to particular types of goods.

7. Whenever you use company vehicles, they should get full
insurance to protect the business against liability in case an
accident occurs. Businesses should get insurance against
third-party injury and comprehensive insurance for their
vehicle in case it becomes part of an accident. Employees
who use their vehicles for business should have their
personal insurance in case an accident occurs. A big
exception to this is if they deliver goods and services for a
fee. Also, include the delivery personnel.

8. Whenever a catastrophic or disastrous event occurs, the
operations of a business might undergo interruption. During
this time, the business may suffer from lost income because
of the inability of your staff to work inside your office, make
sales calls and manufacture products. This kind of insurance
usually applies to companies who need a physical location to
complete their business like retail stores. Insurance for
business interruption will compensate a company for the loss
in income whenever these events happen.

9. Get the right insurance in place, so your business will avoid a significant financial loss because of a
catastrophic event or lawsuit. Check with your insurer to find out what kinds of insurances are
advised for your business so you can put those plans in place as soon as you can.
At the River Valley Insurance Agency Inc we take pride in making sure our clients are well
protected at prices they can afford. To learn more about how we can help you please contact our
agency at (616) 301-9500 or visit our website to request a free quote.