What type of Insurance should I have for my business?
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What type of Insurance should I have for my business?
I have a small online retail store. I sell through online trough eBay and my own site. I do not manufacture anything I sell but am now starting private label products. I make over 75k year. I am not an LLC.
Asked on February 4, 2017 under Business Law, North Carolina
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
First, set up an LLC and run your business under the LLC: that will go a long way towards protecting your personal assets (e.g. money in the bank; house) from business debts, liabilities (from being sued), obligations, etc. That's the whole point of a "limited liability company," after all.
Second, you will want *a lot* of liability insurance if you're getting into private labeling--you want to be protected if anything you private label and put out there hurts anyone. You'll probably want to insure your inventory, in case what have labeled is ruined by fire or weather, or stolen. You may want some insurance vs. loss of data or computer files, or for lost profits due to a temporary "business interruption." And if you have employees, you'll want to buy the insurance that covers you against employee dishonesty. Any reputable insurance agent can help you get the right insurance. Business insurance is surprising affordable (I used to have a publishing company with gross sales of $500k per year back in 2005, and got all the insurance I needed then for around $2k/year, which was also, by the way, a deductible business expense); don't skimp on it.
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