You may think that you’ve set your small business up correctly, and are ready to take a holiday in celebration.
Protect Your Small Business With The Proper Insurance Coverage
However, if you don’t fully understand what’s legally required of you, then your business may fall short in the protection department. Setting up proper insurance coverage is one of the wisest steps to take in safeguarding yourself and your employees.
Additional risk-preventative measures are also worth considering, to allow your company that extra security cushioning. There are several types of insurance available, depending upon the type of company.
Seek professional advice
Before diving in and applying for all kinds of business insurance coverage, it may be wise to seek professional advice and guidance.
Although you may think that you’ve thought of every potential risk, an outside perspective may be beneficial, especially if you’re new to the business world and its requirements.
Join Our Small Business Community
Get the latest news, resources and tips to help you and your small business succeed.
Whilst asking family and friends is a good start, seeking advice from a reputable licensed commercial insurance agent may be the way to go. They are qualified to aid you in assessing your needs and may help you find quality insurance companies.
Understand the different types of insurance coverage
There are several forms of insurance that will benefit you in different ways. You can’t simply adopt one type and assume that it will protect you from everything.
Doing your research first and ensuring you that understand each form of coverage and the potential need for such, is essential. Depending on your country, lawful obligations may alter as well.
The following are the various different types of insurance coverage that your small business may require or benefit from:
General liability insurance
General liability insurance may also be referred to as “business liability insurance” as it protects your company from any bodily injury or property damage claims that may occur on the premises or during everyday operations.
If a customer, for example, injures themselves in your store, any medical costs may automatically be covered. This will save you from offering compensation right out of your pocket.
The same is to be said if your employee accidentally smashes your client’s window during a renovation. Rather than the money coming straight from you, your insurance will be there to cushion the blow.
Copyright breaches, as well as reputational damage, are also covered under general liability specialized lawn care insurance. Your business can nominate other companies or contracted workers to be covered under the same insurance.
Worker’s compensation insurance is mandatory in most US states and offers protection against injury-related lawsuits and medical costs that may occur if one of your employees gets sick or is harmed at work.
As a small business owner, protecting your employees should be a top priority. Not only does worker’s compensation support the employee and their families, but it can also save you a lot of time, money, and reputation that you’d otherwise lose without it.
If you’re thinking you can get by on your own, you should remember that it doesn’t just cover a few scrapes and bumps; it can aid in more serious accidents as well, and even fatalities.
Commercial property insurance
You’ve moved into your brand new rented or owned business location, set up your fancy equipment, and stored all of your important documents away. This may seem like the perfect picture—until you arrive the next day in a burnt, broken, and/or vandalized space.
Commercial property insurance is put in place to protect your company from major equipment, personal and structural losses occurring as a result of the following:
- Broken pipe damage
- Storms (lightning)
Obviously, the potential damage done will vary depending on the type of business.
Commercial property insurance, however, attempts to cater to most styles of companies, and the potential physical and intangible asset losses that they may face. (5)(6)
Other types of insurance coverage that your small business may need include:
- Liquor liability insurance
- Professional liability insurance/errors and omissions
- Commercial auto insurance
- Data breach insurance
- Business income insurance
- Unemployment insurance
- Cyber liability insurance
- Umbrella insurance (7)(8)
As a small business owner, it is essential to protect your company’s reputation, assets, and employees, as well as your own personal property.
Understanding the different forms of insurance coverage is important, as you may be legally obligated to obtain a certain policy in order to legally function. Seeking initial guidance is recommended in order to assess your needs and potential risk factors.
With the proper insurance coverage, your company can save a lot of money, integrity, and legal action, while offering support to your employees.
Some other articles you might find of interest:
Would you like to better understand how to drive and increase traffic to your startup website?
Do you have what it takes to start and run an online business?