Small Business Insurance: Description of Small Business Insurance

As a small business owner, you probably work around the clock and you probably sank all of your personal wealth into your business. You have even sacrificed time with your family and friends. So what will you do if your business is burned to the ground or you are sued for being liable?

Get small business insurance coverage. Research what kind of insurance and how much coverage suits you, your income and your business.

  • Find out your small business’s risk-level. If you own a flower shop, you face fewer risks than a sky-diving club. Your risk level for property damage and bodily injury is lower and you will need less coverage; and this will result in a lower premium.
  • If your small business works with chemicals or combustibles, you work in a high-risk industry and will require higher coverage, resulting in a higher premium.
  • If you are experienced in the field of work your small business specializes in, you are at a lower risk for being sued for errors and omissions, giving you lower premiums.
  • Research the history of your industry. Base your coverage on the litigation rate and the judgments awarded. Also look into common injuries and damages, and what coverage your peers have included in their small business insurance policies. There may be areas of your business that will require extra coverage or risks you had not previously anticipated.

Learn all you can about the small business insurance companies that are available to you.

  • Small business insurance coverage varies between insurance companies. Compare prices and coverage from several different insurers before buying.
  • There are insurance brokers that specialize in different industries. Find a broker that knows the needs of your small business. Also, bring your broker in from the very beginning of your business and work with him on an annual basis to review your changing needs as your company grows.
  • Insurance companies are rated; make sure your insurer has a high rating before you buy.

Do not take unnecessary risks that can expose you to liability or property damage lawsuits that could financially destroy your small business.

Small Business Insurance: Description of Small Business Insurance
  • Make business deals only with other insured and trustworthy businesses.
  • Train your staff and hold refresher courses on their responsibilities and on workplace safety procedures.
  • Do not allow gaps in your coverage. You could be sued ten years later and you may not have been covered.

You need small business insurance to cover the possibility of disaster.

Small Business Insurance: What Does Small Business Insurance Cover?

The financial downfall of your small business can come from any direction. If you are the owner of a small business, you are probably on a tight budget and would not be able to sustain a huge and unexpected expense. Severe property damage or a lawsuit could take more than your company can give. Small business insurance will financially protect you and your company from many scenarios.

The four basic financial catastrophes that small business insurance will cover are: business liability, bodily injury liability, property damage and profit loss.

Business liability coverage includes any unintentional mistakes made by you, your employees and your subcontractors. The different types of coverage available to you in your small business insurance policy include:

  • Errors and omissions for any business-related missteps.
  • Director’s and officer’s insurance for the actions or inactions of your senior management.
  • Employer’s liability insurance to cover any expenses not covered in worker’s compensation.
  • Employment practices liability insurance covers any costs related to employee accusations of harassment or discrimination.

Bodily injury liability will financially cover your small business if a customer, client, employee or volunteer is injured on your premises. People do get hurt, disabled, sick and even die in the course of a business day and your business must be financially protected.

• Workers compensation, medical, dental and life insurance for employees.

• Life and disability coverage for you as the business owner, as well as your senior management, to cover the costs of keeping the business going while a leader of the company is unavailable.

Property damage coverage will pay for the repair or replacement of your building, vehicles, product, machinery, equipment, personal property, furniture, intellectual property and business documents.

  • Business property insurance and fire insurance.
  • Vehicle and fleet insurance for all of the vehicles you use for business purposes.
  • Cargo insurance for shipping inventory.

Profit loss coverage can come in the form of business interruption insurance to cover a lapse in income due to many contingencies, including a lawsuit or property damage.

Make sure you cover your small business for the most basic of possible mishaps and, depending on your risk tolerance and budget, be as thorough as you can with your small business insurance coverage.

Small Business Insurance: Who Needs Small Business Insurance?

If your small business is a risky venture like an investment brokerage, you will want to ensure your clients will not sue you for losing their money in a bad investment. Perhaps you have a less risky career and only write articles from your home-based business: you could be sued for copyright infringement.

No matter what kind of business you are in, you need to protect yourself and your business. One lawsuit with one big settlement can mean you have to close your doors.

Small Business Insurance: What Does Small Business Insurance Cover?

Financial planners help people with their money problems. They give advice on how to invest, how to save, and how to pay bills. If your client loses money or ends up in bankruptcy, he may decide it was your fault and file a liability suit against you. If your small business works with other people’s money, includes accountants, auditors, bookkeepers, claims adjusters, and so on, make sure you can afford to defend your company’s reputation.

The technical field is in constant flux and so are their insurance needs. If you have a small business that specializes in software design, programming, computer and network repair, protect your business by regularly revisiting your small business policy.

A small business in the marketing field, such as an advertising agency, graphic designer, copywriter, publisher, printer or photographer can be exposed to accusations of false advertising, copyright infringement and invasion of privacy. Small business insurance will financially cover you if you are accused of liable.

A small retail business can suffer from a wide range of problems, including personal injury liability, customer property damage, product safety hazards, and so on. Whether you are in the business of selling electronics, art, bath soap, wedding gowns or anything else, a small business insurance policy will financially cover you for many unfortunate events.

The food industry has unique problems. Issues of spoiled food and food poisoning can arise. If you are a chef or are catering in someone’s home, you can be held liable for damages to their kitchen. As a caterer, chef, baker, candy-maker, and any other type of foodie, make sure your small business can recover from such a financial setback.

No matter what you are in business for, if you have a small business you want to protect it from any contingency. Make sure you have small business insurance and are thoroughly covered for the type of work you do.

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