Insurance

Anyone starting up a new business takes risks. To some extent, you can insure against these risks. Think about which risks you wish to run and which insurances you wish to take out. In the case of small risks it may be more cost-efficient to put some money aside than take out an expensive insurance policy.

As an entrepreneur you will be dealing with two kinds of insurance:

1. Personal insurance(such as health insurance and household contents insurance)
2. Business insurance(such as insurance of inventory and stock).

Insurance companies make a distinction in this respect. For example, the third party liability insurance which you have as a private individual does not apply in the context of your business activities.