Regardless of what business you plan to run – whether you are opening a franchise or have new product inventions – you will need to get business insurance to protect against operating liabilities. Especially when starting a new business or setting up shop as a new manufacturer, it can be difficult to obtain adequate insurance coverage, so it is important to understand the obstacles in order to secure coverage.
To locate insurance for your new business or product will likely involve an extensive search for the right insurer and keep in mind that it may even require you to “sell” your idea in order to obtain coverage. In addition, the policy could come with some form of self-insurance or policy limitations. Start by talking with trade groups and peers to determine if packages exist that will cover your needs. Also, consider working with a specialty broker who is familiar with the general industry in which your small business is centered. For example, there are insurance brokers that specialize in professional liability, transportation, product development and new businesses. Why not look for insurance quotes online?
It may also make sense to speak with high-risk insurers, depending on the nature of your business. For example, if your new product is inherently dangerous, the risk may not be insured via traditional policies, but specialty insurers will write a policy specifically to cover your needs. If there are other companies in your field, look at their compliance standards and safety mechanisms before drafting something similar to submit to insurers along with your insurance application. This will help to establish a history by drawing on recognized businesses.