When starting up a small business do i have to get insurance right away or can i wait like a month or two?

Question

When starting up a small business do i have to get insurance right away or can i wait like a month or two?

Answer 1

Get insurance immediately. If you can't afford it, don't start the business. Basically, one calamity and your business is sunk.

Answer 2

It really depends on what kind of business. If you will have people coming into a shop or office, you need insurance. What if they slip and fall, for instance? If you will be providing a service that creates a liability for you--giving your expert opinion, for instance, than you will require insurance ( errors and omissions).

If you will have employees, you must get workers comp.

If you store merchandise that you can't afford to replace out of pocket, you need to insure it--what if there is a fire?

If you will have employees drive your vehicle, yes you must insure it.

If you are going to someone's home or business (contracting services), yes, you should be covered.

If you are working from home and doing something like customer service work, internet sales, etc.. then- no, you probably won't  have to. Talk to an agent if you answered yes to any of these questions...the consultation is free. The agent only gets paid if you purchase insurance, and that is paid through commission by the company that issues your business policy. Best of luck to you in your new business.

Answer 3

Well it all depends on the town you live in. I waited 3 months to get mine but some towns or cities require you to get insurance before you even open the doors. Just be very careful on any decision that you make. Good luck with the new Bussiness.

Sincerely, Tammy

Answer 4

The only insurance you're required by law to carry is workers comp.  Any other coverage, might be required by contract, or might not.

Answer 5

I would suggest, regardless of the type of business you are running, you get your insurance to be active the day you open the door.

Waiting can be fatal to your business. If someone has a liabiltiy problem with your business the first few days, do you think they're going to wait a few months to file a lawsuit against you?

Not only that, no insurance company will offer you coverage if you have an issue without insurance and have pending litigation.

Do yourself and  your customers a favor and be fully insured the day you open. It's a heck of a lot cheaper than paying a lawsuit w/o insurance.

Good Luck!