If you’re considering starting a new business, cost is a huge factor in your decision making.  Depending on your line of business, insurance can have a significant impact on your bottom line.  It is very important you understand what coverages you need, what




Some insurance coverages are mandatory by State Law.  For example, in New York, New Jersey, and Connecticut Workers Compensation insurance is compulsory for virtually all businesses.  If you’re in a business with a lot of physical labor involved or one in which there is a lot of exposure to risk, such as construction or moving, this could be a significant cost to your business.  However, a typical office employer will pay much less in comparison since there isn’t much risk exposure for someone sitting at a desk all day.  Essentially the more payroll you have and the higher the risk of the job, the more you will pay for Workers Compensation insurance.




General liability is another coverage you must have  as an employer.  Not only do you need this coverage to protect your business from lawsuits, but many customers and other businesses will require proof that you have it.  This coverage will defend you in court and pay out any settlements there may be.  If your business does not have this protection, claimants will go after your assets and your business is at risk.  Plus as a new business this coverage is very affordable.




Professionals and service firms really must consider purchasing Professional Liability coverage.  This covers your firm from any lawsuits brought against you by Clients based on services you provided.  It is important to understand that coverage from these types lawsuits are excluded in typical General Liability policies.  So if you provide professional services your business may be at risk without this coverage.  This coverage includes Malpractice Liability for doctors, Professional Liability for lawyers, and Errors & Omissions for technology firms and any other service firms.  With a clean record this coverage is very affordable.  As one can imagine the riskier the profession, such as a surgeon, the more this coverage will cost.




Building and business personal property coverages are pretty self-explanatory.   Many landlords require you to have some sort of coverage in order to lease from them.




Business Income and Extra Expense is very important if you can’t afford to be closed down after an insured loss.  For example, if your business burns down this coverage will pay your expenses to set up business at a new location.




There are many other coverages that you may need to protect your new business.  Some to name a few are Business Auto Insurance, Employers Practices Liability, Umbrella, and Inland Marine Insurance.  Contact your Kirkwood Insurance agent today if you have any other coverage questions or would like advice on the coverages you need to protect your business.