Optimism is high among small business owners, with revenue and staff growth on the rise as 53% of small businesses reported thatthey planned to expand in 2018. Growth is great and indicates positive trends for many small business owners in various industries, but it also brings with it more questions regarding company compliance and protection as youwork to cover all your bases.Business insurance is a tricky subject that really depends on the type of business you run and how you are operating, but if you want to ensure you are covered, you will want to take a look at these four policies.
If you are just getting started and are only going to invest in one type ofinsurance for your small business, then it absolutely must be general liability insurance. This will ensure your company and all of the time and money youve invested into is safe as it protects yourbusiness and any employees from any damages incurred as the result of bodily injury, property damage,medical accidents or associated expenses, libel, slander, the cost of defending lawsuits, and settlement bonds or judgments required during an appeal procedure. Every small business, even if it is home-based, should invest in general liability insurance.
This is particularly useful and important for businesses that provide services to customers. Professional liability insurance,also known as errors and omissions insurance, covers you against any claims or damages caused to your clients that result from mistakes or failure to perform. General liability insurance policies generally do not provide this type of coverage and it is crucial in ensuring you are protected against any false claims as well as malpractice.
If you are interested in getting a little bit of every type of coverage, try looking for a business owners policy that includes various features that benefit your small business. This type of policy will notonly include all of the types of insurance you arerequired to carry as a business owner, but it will also include other things such asbusiness interruption insurance, property insurance, vehicle coverage, liability insurance, and crime insurance. You can usually tailor your specific plan to fit what you need, making this type of policy one of the best as it often costs less than the total cost of all the individual coverage you might be looking for.
Seeing as most small businesses operate out of homes, it is important to note that home insurance doesnt always cover home-based losses. You may be required to add additional riders to any existing home insurance policy in order tocover losses associated with your business, which is where personal property insurance might come in handy. If you own the building you operate out of and it is not covered by any other insurance, personal property insurance willcover the property inside of it, such as office equipment, computers, inventory or tools.
While it may not seem so if you are just getting started, as your small business grows and takes on additional risks and responsibilities, business insurance will quickly become a must. By taking these four different types of business insurance policies into consideration, you can formulate a plan that makes sense for the size of your business, the industry you operate within, and what type of product or service you provide.
Guest Author,Jenny Holt, is a former HR executive turned freelance writer, who now spends more time with her young family and ageing, but ever eager Labrador, Rover.