Three Types Of Insurance Every Small Business Should Have
There are many cost involved in owning a small business. Depending on the type of business you own, you may have advertising, inventory, utilities, rent, and more factored into the cost of your overhead. While you may be tempted to cut a few corners by limiting the amount and types of insurance that you carry, there are a few that you do not need to be without. This is because the risk of not carrying these types of coverage can end up costing you much more in the end. Here are a few that you will want to discuss with your insurance provider.
General Liability Insurance
No matter what type of business you own, and even if you are still home based, you will want to make sure that your business is covered by a general liability policy. During the course of doing business, you will interact on some level with your product consumers, suppliers, vendors, and others. At any given time, any one of these entities could file a claim or take out a lawsuit against your company due to a claim that you, or your product, have caused them some type of injury or loss.
General liability insurance will protect your business from any claims of injury, negligence, and even property damage that could be directly related back to your business activities made by those who are not employed by you. Without this type of insurance, they could possibly be able to file directly against you personally. This would mean that you could be at risk of losing more than just your business. You could lose your savings, retirement accounts, and even your home, if they sue and you happen to lose.
Workers Compensation Insurance
If your business has grown enough that you are now employing other people, there is a good chance you will need to carry workers compensation insurance. Although this requirement varies by your state, industry, and the number of employees you have, many states require that you carry it even if you only have one employee. Not only will workers compensation protect you and your business if any employee is injured on the job or becomes ill due to a work related exposure, but it will also protect you from fines, lawsuits, or criminal charges that could result from you not having a policy.
Commercial Property Insurance
If you run your small business from anywhere outside of your home, you will need to invest in commercial property insurance. This type of insurance will help to protect all of the things that you need in order to successfully run your equipment. This will cover any losses that may be due to damage, theft, fire,or natural disaster. It will help to cover the following:
- Office space
- Furniture and more
In addition to protecting your property, it will also protect any property that has been entrusted to you.
For example: If you are in the business of repairing computers and you suffer a break-in, your commercial property insurance policy would cover the machines that belong to you, as well as those that may belong to your customers.
Even if you are still running your small business from home, this type of insurance is still a good idea as it will offer you additional protections above and beyond what is covered under your homeowners' policy.
Check out sites like http://www.statefundhomeinsurance.com and speak to your insurance provider about these as well as other types of insurance you may need. They may be able to give you a discount by offering you an umbrella policy that will create the coverage you need by combining one or more policies together. Give them a call for more details.