Starting a New Business? Get Answers to the Commercial Insurance Questions You Have

Starting a business is an exciting venture, but it also comes with many questions about how to protect your new endeavor. Commercial insurance often confuses new business owners because it’s vastly different from personal coverage. You need the right protection from day one, but figuring out what that entails can feel overwhelming. Max Insurance LLC, serving Des Moines, IA, helps new entrepreneurs understand their commercial insurance options.

What Types of Coverage Do New Businesses Need?

Most businesses require general liability insurance to protect against customer injuries and property damage claims. Professional liability coverage is essential if you provide services or advice to clients. Workers’ compensation is typically mandated by law once you hire employees. Property insurance safeguards your business equipment, inventory, and supplies from theft or damage. Additionally, some businesses may need commercial auto insurance if vehicles are used for work purposes. The specific coverage you need depends on your industry and business activities.

How Much Does Commercial Insurance Cost?

Insurance costs vary significantly based on your business type, location, and coverage limits. For example, a small consulting firm pays much less than a construction company due to differing risk levels. Most new businesses can secure basic coverage for a few hundred dollars per year. However, businesses with higher liability exposure may pay thousands annually. Obtaining quotes from multiple insurers can help you find the best rates.

When Should You Buy Coverage?

Purchase commercial insurance before officially opening your business or signing your first client contract. Some business licenses require proof of insurance for approval. Waiting until after an incident occurs is too late and could result in devastating financial losses.

Making Smart Insurance Decisions

Don’t leave your new business unprotected. Contact Max Insurance LLC, serving Des Moines, IA, today to discuss your commercial insurance needs.