Business insurance protects your investment by minimizing financial risks associated with unexpected events such as an injured employee, a lawsuit, death of a partner, or a natural disaster. Unless you are an employer, business insurance is generally not required by law, however, you should purchase enough insurance to cover your assets. If your business is an LLC or a corporation, your personal assets are protected from business liabilities; however, neither business structure is a substitute for liability insurance, which covers your business from losses.
There are many different types of insurance available to you when starting your business in South Carolina. While you may not need them all, it is very likely you will need several in order to cover all the bases.
The types of business insurance you will need will depend on what activities you will engage in, and how you will do so. For example, if you will have company cars, you will want to insure them. If you will not, you wouldn’t need this type included in your coverage.
One type of business insurance is product business liability insurance. If you will sell products, you will want to purchase this type of insurance to protect you and your business against any business liability resulting from non-performance of any of the products you will sell. Likewise, if you will provide services to other people, you will also want business liability insurance to protect both you and the clients receiving your services. That way, if a client claims to have suffered damages through your own professional actions, this type of insurance will shield your personal assets and pay for your defense against the claim. It also insures that a client who has suffered damages will be adequately compensated. There are many different types of professional business liability insurance that may be available to you, so you might consider researching them or consulting an agent to find out which one or ones pertain to you and your new business. Liability insurance can provide your business with critical protection in the case of a lawsuit.
Another type of business insurance is replacement. This protects you against theft and disaster, and insures replacement of the stolen items, should one occur. When purchasing replacement insurance, it is important to check whether or not it is partial or full replacement. Full is always preferable, since replacing items can become quite costly.
There are many other types of insurance you can purchase for your business in South Carolina. What you need will depend on what you will offer, i.e. a product or a service. The nature of your business will help determine what you need, as will the materials used to perform daily tasks, such as vehicles.