You are ready to open the doors of your business for the first time. Everything is in place and you are confident that consumers are going to love the products that you are offering. In the moments leading up to this point, you’ve had to make several split-second decisions regarding your business. The one thing you may overlook for now is having insurance in place in the event something should happen. Even now as you are preparing to open the doors, the thought still plays in the back of your mind.
What is Pop-up Business Insurance?
Every business venture needs to have some type of business insurance in place. Opening your pop-up business requires a substantial investment, both financially and emotionally, on your part. You are taking an idea that came to mind and turning it into a physical concept that others will be able to experience along with you. Pop-up business insurance steps in to help you protect your entrepreneurial investment.
Pop-up business insurance will offer you coverage for the unexpected things that can go wrong over the life of your business. It works to minimize the risks you inherit when a partner unexpectedly drops out of the business due to illness, family situations or other issues that you cannot prevent. It provides you with financial protection from events that you have no control over, such as an injury to an employee or a natural disaster that prevents your business from adhering to normal business operations.
Why Have Pop-up Business Insurance?
Although having pop-up business insurance is not a legal requirement for owning a business, it is a requirement that many retail leasing companies have in place. This is due, in large part, to the fact that this type of insurance protects your business’s landlord almost as much as it protects you.
In the event that someone sustains an injury while at your business’s location, you and your business landlord are responsible for the costs relating to that injury. For example, if someone slips and falls coming in your front door, you and your business landlord are now responsible for the medical expenses and any additional expenses such as loss of wages, physical therapy, and other relevant costs.
The Landlord’s Insurance is Limited
Your business landlord likely has business insurance in place to cover half of the total cost of any incident. If you do not have business insurance before the accident happens, you are now personally responsible for your half of those expenses. This means you must do whatever you can to satisfy your part of the financial obligation. It could result in you having to file bankruptcy, take out extensive personal loans or even close down your business to pay those bills.
What Does Pop-up Business Insurance Cover
As a pop-up business owner, you need to have several types of liability insurance in place to protect you from the financial repercussions of accidents or damages that can occur throughout your day-to-day business operations. Liability coverage also works to protect you from any legal matters that may arise from an injury or property damage situation.
Public Liability Insurance
Public liability insurance gives you a protective barrier from accidents, injuries and property damage situations that may occur as a result of doing business with the general public. Your insurance policy comes into the picture when someone sustains an injury anywhere on your property, including the outside parking lot area. If something in your store should happen to fall and break an item, such as a display case, causing injury to a customer in the process, your public liability insurance would handle the episode.
If you are going to be hiring employees to work for you, having workers compensation insurance is mandatory. Your employees will work hard for you and be diligent about preserving your investment. However, accidents can still happen and you need to have the proper coverage in place to protect yourself and your employees. Slip and fall accidents happen all the time, without warning. When your employee sustains an injury from a slip and fall accident, the costs of that situation quickly begin to add up. Your employee will have a mountain of medical bills and you will be in need of someone to cover for the injured employee during the recovery process. Workers compensation insurance helps you handle all of these aspects while also providing you with the financial protection that you need.
These are the two main types of pop-up business insurance coverage you need. You may also want to consider obtaining product liability insurance. This insurance provides you with a level of protection should the product you offer to consumers malfunction for any reason, causing injury as a result. It is impossible to think that you can control every aspect of your business environment and prevent accidents from occurring. That makes public liability insurance an essential part of your business.
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