Unfortunately, a lot of people don’t quite know what they’re getting themselves into when they’re starting a business. Their startup venture may be headed for a crash and burn if they don’t spend enough time addressing certain details. In particular, startup founders who fail to recognize and acknowledge their business liabilities are more likely to fail. You can avoid this scenario by knowing what type of business insurance policies in Canfield is available.
Why Businesses Skip Insurance – And Why You Shouldn’t
Businesses may choose sub-par insurance for any number of reasons. For some, it’s a simple matter of oversight, not knowing what their true liabilities are, or how to address them. In other cases, it’s a matter of cost-cutting.
This is never a good approach because a failure to patent your idea or recognize inherent dangers around that could send your dream off the rails, or worse yet, straight into a lawsuit. On the other hand, business owners who ensure their businesses may escape potential legal quagmires.
Types of Business Insurance Policies in Canfield
There are several types of insurance entrepreneurs may want to consider before opening their doors for the first time.
- General liability insurance is a must-have for all businesses and covers legal liabilities resulting from accidents, injuries, or other claims of negligence.
- Product liability insurance specifically covers companies that may distribute, manufacture, or sell products as part of their business operations. Your insurance premiums are commensurate with your degree of risk.
- Errors and omissions insurance covers businesses that provide services instead of sell products. Some states require proof of errors and omission insurance before the start of business.
- Commercial property insurance covers your equipment and buildings as a result of vandalism, theft, or natural disaster. Business insurance policies in Canfield can cover business interruption and lost income, among other damages.
Other Forms of Protection for Your Business
Entrepreneurs can elect to purchase as much or as little coverage as they deem necessary, but consider protecting your intellectual property with a patent. A patent doesn’t protect the physical aspects of your business, but the idea of it.
When you’ve issued a patent, competitors are excluded from making or selling the product in the United States. Keep in mind there are two different types of patents – utility patents protect processes and machines, while design patents cover the ornamental design of your product.
Entrepreneurs also have the option of copyrighting, trademarking, or creating a registered trademark for their brand. The most legally rigorous of the three is the registered trademark, which requires you to file an application with the U.S. Patent and Trademark Office. Upon approval, you’ll be issued a federal registration certificate.
Copyrights and Trademarks don’t require any notification or paperwork. When you create intellectual property, you assume copyright under the law. The problem with copyright is it can become a “he said/she said” legal battle in the event of copyright infringement.
All companies must take a realistic inventory of their assets and liabilities before opening for business. The risks are too great to ignore, so make sure you’re protected with business insurance policies in Canfield.
Call our office today at 330-337-9557 to schedule a consultation to discuss your goals and options.