Without business insurance, your company is vulnerable to expensive lawsuits. If another person is injured, or becomes ill due to your product, they can file a lawsuit against your company. If you are not adequately prepared to deal with the lawsuit, it could end up costing you your business. Purchasing adequate insurance is important, but where do you start? How much insurance do you need? What insurance options are available? Here is a basic guide to small business insurance and the importance of obtaining insurance for your business.
If you own a home, you already have homeowners insurance. Call your insurance provider to increase your coverage amount to include your home as part of the plan. You need to calculate how many assets you store at home, if you are running a home-based business. Once you have this figure, let your insurance provider know so they can draw up a new homeowner’s policy for you. Insurance companies provide an in-home business insurance policy that covers $10,000 or more. This is a great way to protect your business in the event of theft, fire, and other damages. If you work out of a store, talk to your insurance company about property insurance. It will cover the same things (theft, fire, etc.) to make sure your company’s assets are protected.
General Liability Insurance
Every small business owner needs to invest in general liability insurance. This will help to cover your business in the event of bodily injury or property damage. If a deliveryman slips and falls in front of your store, they can legally sue your business. Liability insurance will help to protect you from these lawsuits. If you own a business where people could become injured (construction, food, etc.) it is beneficial to invest in general liability insurance to protect your business. Customers can legally sue your business if you have ice in the parking lot and they slip and fall as a result. You can never be too safe when it comes to your insurance needs.
Business Owner’s Policy
The business owner’s policy will include all the information a small business owner will need. It will offer insurance coverage for vehicles, property, and liability needs. Contact your existing insurance provider to discuss the business owner’s policy to find out how much it will cost, and what you qualify for.
Not only do you need personal auto insurance coverage for your cars, you need to obtain insurance coverage for your company vehicles. Commercial auto insurance will protect the cars that your employees need to drive for business purposes. It will protect the cars from damages and collisions, and can cover the assets inside the car.
An important insurance policy to invest in is worker’s compensation. This insurance will cover the expenses of employees that are injured on the job. You need to have insurance that pays for their medical expenses and salary needs. Failure to have enough coverage will leave your company vulnerable to lawsuits from employees as they can legally sure you for the accident. Every business must invest in worker’s compensation insurance if they want to stay safe. No matter what type of business you run, employees can easily be injured at any time. Make sure you purchase the right insurance to protect your company from financial ruin due to lawsuits.
This article was written by Richard Craft, an MBA student who hopes to help you and your business succeed. He writes this on behalf of Allied Insurance Brokers, your number one choice when looking for the best types of specialty coverage for construction Check out their website today and see how they can help you!