Oftentimes, in the haste and excitement of getting your small business up and running, one important aspect is forgotten or neglected. That aspect is insurance products that serve to protect your business. Different kinds of small business insurance products are available. It simply is not a case of one size fits all.
If the business has any employees, other than the owner, then most, if not all, states require that the business carry worker's compensation insurance. That insurance comes into play if a worker is injured on the job. Carriers, premiums, and minimum coverage requirements may vary from state to state. However, it is an essential part of any insurance package.
Another kind of insurance is business interruption insurance. If there is a fire, flood, or disaster that prevents your company from operating for a period of time, this insurance can reimburse the insured business for losses suffered while the business cannot operate. Another kind of small business insurance that is available to protect your business is general liability insurance. This kind of insurance covers liability claims if someone, other than an employee, is injured on your business premises.
For example, if a customer trips over an electrical cord and breaks an ankle while visiting your business, that insurance is there to protect your business. You never know when a customer might make a claim for medical injuries or file a lawsuit against the business. Depending upon the type of business, malpractice insurance or, as it is commonly called in the insurance industry, errors and omissions insurance, is a very good idea to have. This insurance protects the professional, such as a lawyer, physician or accountant if a claim is made for errors in advice or other malpractice.
If your business is a home based business, then an endorsement on your homeowner's policy may be available to protect your business. This will apply if you have customers and clients that visit your home. If not, it may not be needed. Each insurance company has different rules about what they will or will not insure for a home office, so doing the necessary homework is critical.
If your car is going to be used in your business, and not just for visiting customers and clients, then a commercial auto liability policy may make sense. Review your small business insurance needs. An insurance broker can help you navigate the thicket of products available to protect your business. For example, failure to carry worker's compensation insurance when required by law can lead to serious financial and legal consequences for the business.
Small business insurance is available to protect your enterprise and reduce risk so you can run that business and sleep at night without worrying about potential liability. Make sure that you have the appropriate coverages for your particular business type. Deductibles and coverage amounts vary, so it is essential that you work with a broker who understands your needs, your financial picture, and your goals for the success of your business. You want all that hard work to pay off for you, not to pay off uninsured claims.
Author Resource:-
Nick Messe, the author, is president of Lead Frog LLC. In Easton and Salisbury Maryland Kiefer & Colbourne Insurance provide high quality Maryland homeowners insurance to protect and manage the risks of life. Call 1-800-649-3114 for a free homeowners insurance quote.
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