Insurance protects you from unexpected problems –- liabilities — that may arise during the course of doing business. These could include the following:
- Unexpected problems with products or services
- Death of a partner or employee
- Natural disasters
While liability insurance may not be required, it can be a smart investment in the future of your business, no matter what type of business structure you set up. Several types of liability insurance are available. The type you might choose depends on your business and the risks associated with that business.
- General liability insurance protects against problems associated with claims of negligence, including legal, medical, and other costs.
- Product liability insurance helps protect the business in the event of any claims of injuries or property damage associated with your products.
- Internet business liability insurance and e-insurance can protect Internet-based businesses from costs associated with hackers, viruses, copyright infringement, and other electronic threats to your business.
- Professional liability insurance may protect you from costs associated with practicing your profession. Many professional organizations offer liability insurance at reduced rates for members.
- Other kinds of insurance to consider include home business, criminal, business interruption, key person, and malpractice insurance.