Mumpreneur is not a new phenomenon, but only a new term. In the 1987 movie Baby Boom, Diane Keaton portrays J.C. Wiatt, a successful consultant in a big firm who unexpectedly becomes a foster mother of a baby girl.
When motherhood starts to get in the way of her job, she is replaced and thus leaves the company. Soon enough inspired by motherhood, she starts making baby food and successfully re-enters the business world again. In a way, the story of J.C. Wiatt predicted the trend in the years to come after. Women embraced not only their motherhood but also have proven that it’s a blessing and not an obstacle to be entrepreneurs.
Of course, being a mumpreneur means that you have to take all the business endeavors and measures like any other entrepreneur. One of those precautions is insurance. Statistics say that fifty percent of small businesses don’t make it their first year.
This is a devastating fact which would shake anyone’s confidence, but it’s also something manageable – with insurance.
General liability insurance
The general liability insurance is the most common among the business owners. It will provide coverage for all damages or injuries caused by the third party or their property and assets. This also applies if your product or services caused the stated damages or injuries. It will cover medical expenses and attorney fees in instances when your company is deemed responsible.
Business owner’s policy
Business owner’s policy has everything from vehicle coverage, crime insurance, and liability insurance to property insurance. This type of insurance will save the money and you can negotiate the terms and alter it to fit your needs.
Commercial auto insurance
Consider buying the commercial auto insurance if you use a vehicle for transport of employees, equipment or to conduct business. Vehicles like cars, vans, SUVs and trucks fall under this insurance which protects them from damages and collisions.
In case you and your employees use your personal vehicles for business purposes, you should buy non-owned auto liability to protect the company. This should be considered as an option if you or your employees don’t have the insurance for the private vehicle.
As an entrepreneur with employees, you have a responsibility to take care of their well-being. Worker’s compensation is an insurance intended for employees who are injured on the job. Wage replacement and medical benefits are important for employees, especially if they work on the high-risk jobs. In exchange, the employee will not sue you for damages and incident that caused them. As an entrepreneur, you should consider this insurance since it would protect you, your business and the employees. It’s even mandatory based on the laws and regulations, depending on the number of employees and type of business.
Professional liability insurance
Also known as professional indemnity insurance, this policy will protect you from the cost of defending yourself against negligence claims by clients. It will also help protect you in case the damages incurring from such lawsuit. This is an important insurance for businesses which provide advice and services, like lawyer, accountant, consultant, real estate and similar companies. The general liability policy is not intended for this type of protection and so it’s important you have this insurance too if you are a service provider.
Directors and officers insurance
As a CEO of a company, you have an obligation to your employees and their future. Directors and officers insurance protects your company against the negative actions of the top management.
Namely, it’s intended if you or other managerial staff perform actions which are financially and operationally detrimental to the company. For example, in case a director or an officer gets in the lawsuit for their actions which consequently causes damages or costs to the company.
Data breach policy
Every business today stores information. However, if you work with very sensitive data and non-public information you should buy the data breach policy. It’s your responsibility to protect the information on your employees, clients and customers on any media. A data breach can happen to any files stored on computer, server or on paper and this policy will protect you against that loss.
Being one of the most important insurances, the homeowners policy is certainly what you will need if you work from home. As a mother, you’ll probably start with the home office to be closer to your child. Homeowners insurance will cover any damage to the home or assets inside caused by your actions, as well as protect you from accidents.
Personal umbrella insurance
Personal umbrella insurance is an additional insurance to already existing one. It is intended to protect you from big claims or lawsuits, something your local litigation support will surely advise you for. This type of insurance is used when all others have reached their limits and are exhausted. Having personal umbrella insurance can save you from significant financial loss due to unforeseen events.
Insurance is not creative and the very definitions about it can cause you to feel a little unsure about the whole mumpreneur venture. However, look at it as a means to protect yourself and your business, as well as all people participating in realizing your ideas.
Being a small business owner will sometimes require that you deal with boring and tiring subjects, but someone joggling motherhood and entrepreneurship can certainly do it.