Insurance Is A Small Business’ Best Investment

By Randall Orser | Small Business

Audit.When weighing the day-to-day costs of running a small business, you may tempted to go with a lower-priced service or product in order to stay in budget. When it comes to your investment in insurance, it’s essential to recognize the benefits outweigh the costs. We don’t know what tomorrow will bring, and your business must be protected from weather disasters, vandalism, burglary, and other incidents that can result in financial losses great enough to require shutting the doors. The right business coverage will keep your small business running when a disaster strikes. It’s an investment you can’t afford to put off.

Types Of Liability Insurance

It’s essential to know what type of business insurance your company needs. Liability insurance is available to accommodate different business needs.

General liability is the most common form of insurance for businesses. Accidents and injuries are covered, and it protects the business from the result of lawsuits.

Product liability protects business from lawsuits resulting from faulty product injuries.

Professional liability protects business services from lawsuits connected to malpractice, negligence, and mistakes. This coverage is for businesses such as accountants, automotive mechanics, lawyers, and medical offices.

Commercial Property Insurance

If a company owns the building where it conducts business, commercial property insurance will be necessary to protect against the loss of all business-related property. In addition to the building, this insurance would cover furnishing, computers, stock, documents, and other business property. Weather-related disasters, fire, smoke, theft, and vandalism are all covered by this form of insurance. If you run your business from a home office, you still need to be sure your are properly insured. Homeowner’s insurance policies do not cover damage, losses, or liability claims related to a home-based business.

Business Vehicle Insurance

If your business owns one or more vehicles driven by you or your employees, it needs to have liability insurance in the event of an accident where damages, injuries, or a death occurs. Minimal coverage must include third-party injury, but a comprehensive policy will also cover the vehicle. If employees use their own vehicle for business purposes, their personal insurance will cover any accident that occurs. The only exception to personal insurance covering an accident is when the employee’s car is being used to deliver goods or services for a fee.

Business Interruption Insurance

The conducting of daily business will probably be interrupted in the event of a major disaster. Your employees will be unable to work, and that can place a financial hardship on your company. Companies that require a physical location in order to conduct business are the ones that need business interruption insurance. This essential insurance compensates a business for the income it loses during a disaster and prevents serious financial repercussions.

Legally Required Insurance

Any small business that has employees must have worker’s compensation insurance coverage. Without this insurance in place, a business may be charged penalties and held responsible for any employee injuries that occur on the job. Most states also require unemployment and disability coverage. Check with your insurance agent to be sure you are meeting all legal requirements when it comes to your business insurance.

Protect your business against devastating financial loss and the possibility of shutting your doors for good. Invest in the right business insurance to protect your business, yourself, and your employees. Check with your agent to be sure your business insurance is adequate for your potential needs.

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Number Crunchers® Financial Services

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