The Absolute Necessities from the Ground Up

Taking the plunge with a new business? You’re in luck. It’s never been a better time with support all over the place. As a new business owner, you may have legal advice, a business plan, and employees already, but don’t undervalue insurance when it for added security. Do not overlook the benefits of peace of mind.

You may not know all the important insurance coverages, or why exactly you’d need them. We’ve got a guide for you here with the necessities for a smooth launch.

And if you’re thinking specifically about group health insurance, we’ve got all the information on that over here.

Types of Insurance for Your New Business:

Worker’s Compensation Insurance

1. This coverage pays for medical care and replaces lost wages for the worker affected.
2. This is required insurance coverage. (Except in Texas)
3. Insurance cost is averaged to about $2 for every $100 in payroll.

Unemployment Compensation Insurance

1. 1. This will guarantee some wage to your employees after their job is lost.
   2. This is required insurance.
   3. Insurance cost varies by state.

Disability Insurance (Required in Some States)

1. This covers your employees if an illness or injury causes them to miss work.
2. Rhode Island, Hawaii, New Jersey, New York, and California require this.
3. Insurance cost will be about .25%- .5% of payroll.

General Liability Insurance

1. If someone else is injured on your property or from a business service, this covers that situation.
2. This is not required coverage.
3. Average liability coverage will come to around $500,000 per year but can be lessened or increase by your business’ risk level.

Commercial Property Insurance

1. This covers your physical property and spaces that belong to your business. (Including weather, vandalism, or theft)
2. This is not required coverage.
3. Average insurance cost is about $1500 per year.

Professional Liability Insurance

1. This is also known as Errors and Omissions insurance. You’ll need this for higher risk businesses such as lawyers or doctors.
2. This is not required insurance.
3. Average insurance cost is about $1350 per year.

Product Liability Insurance

1. This coverage protects you from faulty merchandise. If you operate with a manufacturer and/or packagers, this can cover you in case they make a mistake.
2. This is not required insurance.
3. The cost will be about .25￠ for every $100 in retail sales.

Employment Practices Liability Insurance

1. This coverage protects you in cases of sexual harassment lawsuits or otherwise.
2. This is not required insurance.
3. These policies have wider ranges due to many factors such as employee number, turnover, and type of business. The range will be from $800-$3000 per year.

Key Person Insurance

1. This insurance type covers your business in the event that the business owner or another key personnel member dies or becomes disabled.
2. This is not required insurance.
3. Less than $1000 per year

Other Insurance Policies to Consider

Business Vehicle Insurance

• Covers vehicles used for the business

Directors and Officers Liability Insurance

• Covers the directors and officers of non-profit businesses in lawsuits claiming they mishandled their business

Business Identity Insurance

• Covers cases of identity theft, even going so far as to notify your customers for you should you have their information

Terrorism Insurance

• • Covers cases of terrorism affecting your business. Check to make sure it is not already bundled with your other policies.

Of course, we hope you never have to take advantage of these types of insurance. However, when it comes down to it, it’s best to keep everyone covered. Whether you’re a home-based business or a larger one, all will benefit from the support. And like before, it’s never been a better time to do so with all the specialists available.

EZ.Insure offers you another helping hand. Your agent will answer any questions you have, compare the plans for you, and even sign you up, free of charge. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-998-2027. EZ.Insure makes the entire process easy, simple, and quick.