Insurance Options for Small Business:
There are a variety of insurance options that small business owners should secure, depending upon their business, business needs and risks involved in the industry and environment in which the business operates. As a small business owner, you are truly part of the backbone of American commerce, and yet the small business environment continues to become more and more challenging. We have become a very litigious society, and small business owners are often at the most risk if they are not properly insured. Issues well beyond a small business owner’s control (like a serious storm or fire) can also challenge your ability to recover and continue to do business. Furthermore, even your own health and wellbeing needs to be insured, as insuring your ability to continue to have an income is key to maintaining the business and supporting yourself and family.
Business Liability Insurance will help protect you and your business from serious financial issues. More than 3/4 of businesses in the U.S. are either sole proprietorship or structured as a partnership. Those forms of ownership exposure your personal finances and your business to what can be serioussly be considerable risk. Even an LLC (limited liability company) needs to have liability insurance. Here are are business liability insurance types that your small business may need:
General Liability Insurance is also known as Commercial General Liability and this insurance is typically the only policy you and your business may need. This type of insurance will cover your business from advertsing claims, injury claims and property damages.
Product Liability Insurance is an ideal insurance policy for businesses and manufacture or sell products, as this coverage will protect you and your business should someone suffer an injury when using that product. With recent issues, and the resulting and potential legal action regarding lead in toys, food safety issues, and more, product liability insurance is increasingly becoming an important insurance for a small business to obtain.
Professional Liability Insurance is another insurance option, particularly the professional liability insurance that is called “Errors and Omissions”. This kind of coverage is needed to protect you and your business from omissions, errors, negligence and malpractice. In some states, doctors must have coverage to practice (also known as Malpractice Insurance), and some kinds of consultants also need this coverage to work as an independent contractor.
Errors and Omissions Insurance is important now more than ever. Consumers are increasingly turning to the legal system to resolve issues surrounding professional liablity. While this is a common type of insurance for doctors, realtors and financial services professionals, more and more small business owners need to know how this insurance policy can truly protect them as well. Let’s face it, professional errors and omissions can and do happen every day in many types of businesses and industries. E&O can save you and your business from complete financial ruin.
There are other insurance options beyond Business Liablity Insurance. As a small business owner, you also need to investigate the following types of policies with your insurance agent and or business attorney:Business Disability Insurance.
Business Disability Insurance covers your income should you become injured or ill. This kind of insurance will not cover 100% of your income, however, it covers from 40% to 80% of you income, depending on what you are willing to invest in this type of policy. This kind of insurance is truly vital to ensure that you do not lose your precious income in what can be an already challening time for a small business owner.
Business Property Insurance. Business Property Insurance is a basic policy to obtain to protect your company’s property and assets. Depending upon the kind of policy you purchase, you can be insured against a lot of serious losses including damage from storms, fires, and more.
With regard to Business Property Insurance, you can obtain basic form policies to cover damages from devastating events like a storm or a fire, or special form coverage to include more events and offers you much broader coverage.
Contact an insurance professional, business accounting professional or a business attorney for more information and determine what insurance options are best for you and your small business.Insurance