Are You a Small Business Owner?
Ask any small business owner just how he or she was able to start and manage their own business, and without a doubt you will hear stories of long hours, borrowed money and a lot of dedication. So it is important that investment is protected.
There are many types of insurance that small business owners should carry, and often it is confusing just what type of insurance one should have for his or her specific line of work.
First, it is important to note that insurance coverage is available for just about any risk your small business might face. An insurance agent can advise you on the cost and type of different insurances to cover your business’ particular risks.
One type of insurance that business owners should purchase is general liability insurance. This will help protect the business owner against claims arising out of accidents, injuries or negligence. If the business becomes liable for an injury, property damage, or medical expenses, they want to be adequately protected. A general liability policy may also cover the cost of defending lawsuits up to a certain amount.
Some small businesses will need to be sure they have product liability insurance. This is true if the business is involved in manufacturing, distribution, wholesale or retail sale of a product, as they may ultimately be liable for the products’ safety. In the event there is such a claim, product liability insurance will help shield the owner from catastrophic financial loss due to a defective product that causes injury or harm to another.
While product liability insurance is important for those who are involved in the sale of goods, professional liability insurance is vital for those who provide services. Some may refer to this type of policy as their “errors and omissions” insurance. It helps protect the business owner financially should there be claims against him or her for malpractice, errors or negligence in the performance of services to its customers. Several professions are required by law to carry this type of insurance by the very nature of their business.
Commercial property insurance is a policy that will protect against loss due to damage of company property, which includes but is not limited to buildings, equipment, lost income, and company papers. Whether the cause is fire, wind, hail, or vandalism the loss should be covered by a commercial property insurance policy. There are different types of policies; some that cover a wide range of incidents and others that are more specific such as protecting against flood or criminal activity. It is important to meet with your insurance agent or broker to see what type of commercial property insurance best fits your needs.
Lastly, if you work from home do not assume that your homeowners’ insurance policy will cover your home-based business. Homeowners’ policies only cover so much and you may be required to purchase additional policies to cover your home based business.
Use these steps to assess what types of insurance are best for your business, and how to secure coverage to provide adequate protection and minimize risks.
1. Assess Your Risks.
2. Shop Around.
3. Consider a Business Owner's Policy.
4. Find a Reputable, Licensed Agent.
5. Assess Your Insurance Coverage on an Annual Basis.
You have worked hard to build your business. Make sure it is properly protected!
