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Do you need business insurance?

On Behalf of | Mar 29, 2021 | Business Formation

When you start a business in Massachusetts, it’s important to cover yourself from all angles. You never know when someone might file a lawsuit over a workplace injury, product liability or another potential issue. If the law is on your side, you might be able to stop lawsuits before they begin.

How can you protect yourself from lawsuits?

During the business formation process, talk to your attorney about investing in business insurance. Different types of insurance could protect you from lawsuits and other legal challenges.

If you have employees, invest in workers’ compensation insurance for your business. When your employee accepts workers’ compensation, they waive their right to file a lawsuit. If you don’t have this type of insurance, your employee could potentially sue you for damages. Workers’ compensation insurance also protects your employees by paying for their medical bills, surgeries, lost income and other expenses after an accident.

You’ll also need product liability insurance if you plan to sell products to customers. If a customer injures themselves after using your product, they might sue your company for negligence. Product liability insurance protects your company from personal injury lawsuits. A business attorney may help you assess the level of coverage you should get.

If you have company cars, you’ll need to buy car insurance for your vehicles. Your employees’ personal car insurance won’t cut it because insurance is attached to the car, not the driver. Without car insurance, your business might be liable for car accidents and other injuries on the road. Car insurance is especially important if you plan on hiring delivery drivers.

Finally, you’ll need property insurance that covers your business in the case of fire, theft, hurricanes and other catastrophes. You might have to buy separate insurance if you live in a high-risk area for natural disasters.

What types of insurance does your business need?

Your business probably won’t need every type of insurance. For example, you don’t need car insurance if you don’t have company vehicles. An attorney may tell you which types of insurance you need and help you protect your business from legal issues.