When you’re just starting out in business, particularly if you’re operating from home, there are a hundred things to think about and do. Somehow, insurance often ends up on the bottom of the new business owner’s list – but if you’re setting up a new enterprise in Colorado, business insurance should be given a high priority. However, it may not be as simple as you imagined. Here are four important things you should know:
1. If you’re operating from home and will have clients visiting your premises, the liability coverage on your home insurance policy may not cover you if you’re using the home as your “business premises.” Your business equipment may not be covered either. You’ll need to clarify these issues to determine if additional coverage is required.
2. Similarly, if you’re using your personal vehicle for business purposes, your private car insurance may no longer be sufficient. Do you travel to client’s premises or deliver completed work or stock in your vehicle? If so, it’s likely you’ll need to upgrade to a business auto policy.
3. Are you a consultant, a professional, or a new media business? Liability comes in all shapes and forms. Whether you’re a social media management business or an architect, there’s always the risk that something you do (or don’t do) will negatively affect a client and result in a lawsuit. As your business probably represents your major source of income, it makes sense to take out insurance to cover this risk.
4. Taken on your first employees? It’s your responsibility to provide a safe working environment and to take out workers’ compensation insurance.
If you’re unsure what the needs are for your Colorado business, insurance advice is just a phone call away, so find out what you need to know sooner rather than later.