It doesn’t matter if you are running a large corporation or selling products from home. It is important to get the best insurance for small business possible. This will protect you from different types of disasters.
There are many different types of insurance. Choosing one or another will depend on the size of your business, how many employees it has, and what industry it is in. This article will explain different types of insurance for small businesses. It also tells you when you need to look into getting covered.
General Liability Insurance
General liability insurance is a must-have for any business. It covers your legal expenses and damages if you get sued in a civil court. Many people believe they don’t need this type of insurance due to the small size of their business. You could think that if you don’t have that many customers or your business only participates in low-risk activities. But even something as simple as someone slipping and falling could lead to a lawsuit. Even if the lawsuit is frivolous, the legal process of responding to and settling the claim will often cost a lot of money. You don’t want one lawsuit to leave you bankrupt.
If you are in the business of giving professional advice, you also should look into errors and omission insurance. This is in case you get sued for making a mistake or offering faulty advice. For a breakdown of 3 of the most popular general liability policies, you can go here.
Workers’ Compensation Insurance
In most states, it is mandatory that businesses buy workers’ compensation insurance by law. Texas is one of the few states that does not make businesses buy workers’ compensation. If you are not operating in Texas, then you need to be looking to buy workers’ compensation insurance. Workers’ compensation covers any lost wages and/or medical expenses when employees get injured or killed on the job. For information on the 10 best carriers of workman’s compensation insurance, check out this article.
Property insurance pays for damages to your business resulting from a covered loss. This can include damages from a natural disaster like a wildfire or flood, and can even include damages resulting from a theft or rioting. Good property insurance covers not only the premises of your business but the contents as well. That means that, in most cases, your equipment, office furniture, and office supplies will get covered if they get damaged. To compare property insurance policies from different companies, you can check out this website.
Commercial Auto Insurance
Commercial auto insurance is like personal auto insurance. But it also covers vehicles used in the operation of your business. Personal auto insurance does not cover accidents or damages to your vehicle while you use it at work. This is why you should always look into getting a commercial auto insurance policy. Even more so if you or any of your employees use certain vehicles for work purposes. If you still aren’t sure if you need commercial auto insurance, you can read a more in-depth explanation of it here.
These are the most common types of insurance for a small business. There are other policies that cover specific areas like terrorism, engineers, or underground tank storage. Be sure to research insurance policies that might be specific to your field or business. If you still aren’t sold on insuring your business, you can read our detailed explanation of why you should always get insured here. Be sure to also head on over to our website to get even more tips on selling, financing, and managing your small business.