Essential Insurance Policies

Essential Insurance Policies for Bitcoin Mining Companies

Any kind of business, including a bitcoin mining company like bitpm.ro, will benefit from an insurance policy since it is designed to protect the owner’s financial assets. The right business insurance will provide the right coverage for your bitcoin mining company and related tasks, such as Withdrawing / Spending Bitcoin.

All About Commercial General Liability (CGL) Policy

Risks are part of any business. For this reason, it is essential for business owners to invest in the most common and comprehensive insurance policy available, which is CGL.

CGL’s coverage includes the following:

  • Advertising and personal injury
  • Legal defense and judgment
  • Medical payments
  • Property damage
  • Bodily injury

Although businesses aren’t required to carry a CGL policy, going on with your venture without one can be very risky. A simple legal dispute could cost you a fortune if you shoulder it alone. You can prevent this from happening by having a sufficient CGL policy that will aid you in terms of compensating for the damages if ever you’d get embroiled in a legal battle.

It is important that you know the extent of your policy’s coverage before settling for one. This is the best way to avoid blind spots once you encounter certain business perils.

The Average Cost of CGL

Bitcoin mining companies typically invest an annual cost of $350 to $900 for $1 million on average for general liability coverage. The price of the policy will vary depending on the following factors:

  • General aggregate limit
  • Per-occurrence limit
  • Number of employees
  • Deductible
  • Location

To get a CGL at a discounted rate, you may want to consider getting it as part of your BOP or business owner’s policy. A BOP offers more extensive coverage in different forms, including property insurance and business interruption.

Other Policies Essential to Bitcoin Mining Companies

While CGL remains to be the topmost needed policy by most businesses, you must also consider getting the following policies if you are into bitcoin mining:

  • Commercial Property Insurance

The equipment used in Withdrawing/Spending Bitcoin are a great investment, which can hurt your business when you lose them in incidents like fire. This is where commercial property insurance can help you. It will be easier for you to have your investment back or replace the damaged equipment.

  • Workers’ Compensation Insurance

While this may not be mandatory, you can consider getting this policy if your bitcoin mining company has employees. Many states require workers’ compensation insurance for any companies with employees. The policy will protect your workers from injuries or accidents by compensating their medical expenses and paying for their lost income while still recuperating from the injuries.

Other Ways to Protect Your Business

Getting business insurance is not the only way to protect your venture and investment. There are other things that you can do to better protect your business and avoid losses altogether.

  • Streamline the internal processes of your venture. This is necessary for creating a safe working environment and removing unimportant variables for general tasks.
  • Protect your personal assets by setting up a limited liability company (LLC).
  • Make sure that you only utilize legal and safe business documents and contracts.

Conclusion

Insurance is an investment in any business, and it is important to set it up even before you begin your venture. It is better to be proactive in protecting your bitcoin mining company even before your clients start Withdrawing/Spending Bitcoin. Also, when deciding which policy is right for you, make sure that you consult with your agent to know if there are certain exceptions in the policy.

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