Insurance for Entrepreneurs

Being an entrepreneur takes time, hard work, dedication and commitment. You don’t want all of your efforts jeopardized due to an unexpected accident or lawsuit. That’s where entrepreneur insurance comes in.

 

If your business suffers a major financial loss, experiences property damage, is involved in a third-party injury or is sued, entrepreneur insurance will help you cover the associated costs so your business can continue to thrive for years to come.

 

But who exactly needs this kind of specialized coverage, and what does it include? We’re here to help you understand everything you need to know. Let’s get started!

 

Jump To:

• What is Entrepreneur Insurance?

• Why Do Entrepreneurs Need Insurance?

• What Types of Insurance Do Entrepreneurs Need? 

• How Much Does Entrepreneur Insurance Cost?

• FAQs

• Get Insurance for Entrepreneurs Today!

What is Entrepreneur Insurance? 

The term entrepreneur insurance refers to a set of multiple insurance policies, all aimed at covering the risks associated with being an entrepreneur. Whether you have employees, work solo, have a startup, or are established in your industry, having the proper coverage ensures that your business will remain financially stable if an accident occurs. While the basic foundation of most entrepreneur policies start with general liability and commercial property insurance, there are a number of other coverages that are important to consider depending on your businesses unique risks. 

Why Do Entrepreneurs Need Insurance? 

Entrepreneurships like all business types come with a variety of operational risks. Without insurance protection to face these risks, in the event of an incident, owners are forced to use their personal funds to recoup losses. Additionally, for entrepreneurs, having the right coverage can help in the following ways: 

 

• Helps with Legal Expenses: Lawsuits are expensive, even if the claim isn’t a huge one. Insurance helps by assisting with expenses like lawyer fees, court costs, payouts and settlements. 
• Replaces Damaged or Lost Property: If an office space or business assets are damaged or destroyed, insurance will help to pay for the property to be recovered or replaced. 
• Encourages Partnerships: Many clients or potential partners require businesses they work with to provide proof of insurance. Having ample coverage gives these partners peace of mind, since you’re protected in the case of a costly accident. 
• Ensures Compliance: Some types of insurance are legally required on state level. Having sufficient coverage ensures compliance, so you can avoid penalties and fines. 

What Types of Insurance Do Entrepreneurs Need? 

Having the right combination of entrepreneur insurance policies depends on the specific needs and risks of your business. While some of the following policies may not be necessary for your operations, here are the key coverages that entrepreneurs should consider: 

 

• General Liability Insurance: Essential for businesses of all types, this coverage protects against lawsuits relating to third-party bodily and property damage, as well as advertising-related claims. 
• Professional Liability Insurance (Errors and Omissions Insurance): Protects business against claims involving professional errors, negligence, bad advice, and failure to deliver promised services. This coverage is crucial for businesses offering professional services such as consultants, accountants, attorneys, and healthcare professionals.
• Commercial Property Insurance: If a storm, fire, robbery or vandalism damages your physical assets, this coverage pays to replace or restore the property. It typically helps cover the costs of buildings, offices, equipment, inventory and furniture. 
• Business Owner’s Policy (BOP): A combination policy that includes both general liability and commercial property insurance, for a discounted price.
• Product Liability Insurance: Covers claims resulting from defective products, malfunctioning products, or mislabeled products. This policy type is essential for any entrepreneur who sells, distributes or manufactures goods. 
• Cyber Liability Insurance: Covers the costs of incidents relating to hacking, data breaches and cyber attacks. Crucial for businesses storing large amounts of data, this coverage generally helps pay for data recovery, client notification and related legal costs. 
• Commercial Auto Insurance: Protects against accidents, vehicle damage and liability claims. This coverage is legally required in all states except New Hampshire for businesses using vehicles in their day-to-day operations. 
• Business Interruption Insurance: Helps businesses by paying for operating expenses if they’re forced to shut down temporarily due to an unexpected event. Funds can typically be used to pay employees, pay for taxes, relocation costs, and other fixed expenses. 
• Workers’ Compensation Insurance: Provides employees who are injured on the job with funds to cover their lost wages and medical expenses. This type of coverage is legally required for all business with employees (in all states except for Texas). 
• Health Insurance: Health insurance helps by covering the costs of essential medical care like doctors visits, prescription drugs, preventative services, and hospital stays. If you operate alone, an individual health insurance plan will best suit your needs, while entrepreneurs with employees should consider a small business health insurance plan. 

How Much Does Entrepreneur Insurance Cost? 

The cost of freelance insurance varies greatly depending on a number of factors. Here are some of the things that insurers consider when determining policy rates: 

 

• Location: Local laws and risks may affect the cost of coverage. 
• Industry: Industries that have higher risk factors may have to pay more for their policies. 
• Claims History: Freelancers with an extensive history of lawsuits or claims may experience higher insurance costs.
• Coverage Limits: The higher your coverage limits are, the more protection a policy provides, but that also means it’ll be more expensive than a policy with a low coverage limit. 
• Number of Policies Needed: Freelancers needing multiple polices will pay more overall than someone who only needs one policy. 

Below are the average costs of some of the most common freelance insurance policies. Keep in mind that the averages may not reflect the actual amount that you’ll pay for a policy, and it’s best to work with a professional broker like EZ.Insure, to get an accurate quote:

 

• Business Owner’s Policy (BOP): $50-$60 per month.
• General Liability: $30-$50 per month.
• Professional Liability: $60-$75 per month.
• Cyber Liability: $100-$200 per month.
• Commercial Property: $40-$60 per month. 

FAQs 

Is entrepreneur insurance required by law? 

Most types of business insurance for entrepreneurs are not required by law, but there are some exceptions. If your business has employees, you’re required to provide workers’ compensation coverage (unless you’re in Texas). Additionally, if your business uses vehicles in its day-to-day operations, you’re legally required to have commercial auto insurance (unless you’re in New Hampshire).  

 

What insurance should I get as a startup entrepreneur? 

While the specific policies you should get depend on the nature of your business, many entrepreneurs start out with general liability, commercial property, or a business owner’s policy. These are great foundational coverages protecting owners against third-party property and injury claims, and protecting physical assets.  

 

How soon should entrepreneurs get insurance coverage? 

A good rule of thumb is to get insurance coverage before hiring employees, starting work for clients or investing in expensive equipment. Having coverage beforehand, prevents having to pay for expensive items or claims out-of-pocket if an incident occurs. 

Get Entrepreneur Insurance Today with EZ.Insure 

As an entrepreneur, you’ve built your business from the ground-up, making it even more important to protect all that you’ve worked for. EZ.Insure is here to help you make the insurance process quick and simple, so you can get the coverage you need, and have peace of mind moving forward.

 

Our platform offers free, no-obligation insurance quotes, side-by-side plan comparisons, and 24/7 access to expert insurance agents.

 

To get started, click the button below, or give us a call at (844)-770-0876.