How to Start Your Own Business, Based on My Experiences: Part 3

Any time that you are going to have a business where the public will come in contact with or step inside your area of operation, you will need to be covered by insurance. There are two kinds of insurance that you will need to have when operating a business like my video rental store. It is time to take a look at the insurance you will need to have before you open your doors.

The first type of insurance that you will need is to protect you from your customers. This is called general liability insurance. Even though you do not own the building you are in, you are the reason the customer has come into that place, making you the person responsible for their safety. It is for this reason that you will need to have good general liability coverage on your building unit. If someone slips, trips, falls, or in any other way gets hurt within your store, you can be sued for medical coverage and other damages. This insurance will cover you and protect your investment and bank accounts from being wiped out in the event of such an incident. The cost of this insurance is generally low and is usually billed on an annual basis. There is little that needs to be done to acquire this insurance.

The other type of insurance that you need is designed to protect your inventory. Commonly called "Renter's Insurance," this value-based policy protects the contents of your store in the event of fire, flood, or other disaster. When you apply for this policy, you will need to know a rough estimate of the average daily value of the merchandise and fixtures located within your store. That number determines just how much it will cost to insure your products. You will not need any list of what you have at the time of your policy; however it would be a good idea to have a list of higher priced items in your store in the event you have a need to prove the value of items lost in the event of disaster. This insurance is also not too expensive, although it is generally billed on a monthly basis. Now that the inside of your store is secure, it is a good idea to consider the area outside your building.