How to Buy Small Business Insurance
How to Buy Small Business Insurance
Owning and operating a small business is hard work. Some problem is always cropping up. Making sure the business runs smoothly, efficiently, and profitably is totally up to you. There is no one to fall back on, no one else to blame. You make the decisions, and either suffer the consequences or reap the rewards. Carrying the right amount, and the correct type, of insurance is absolutely necessary–it’s a backup plan that won’t fail you. Following are a few tips on how to properly insure your small business.
Necessary Coverage
Depending on the size of your company, certain kinds of insurance will be necessary–you have to carry them. They consist of Medicare, workman’s compensation, Social Security, and unemployment insurance. A few states also require a business to provide disability insurance, which will partially cover an employee’s injuries if they are hurt on the job. For companies that use vehicles to do business, special business auto insurance is required. If your small business provides a professional service, such as a doctor or dentist, you must carry malpractice insurance. If your business is a sole proprietorship you won’t need to be concerned about workman’s comp or unemployment insurance, but there are other types of insurance you may need to consider carrying in order to be fully protected.
Liability Insurance
Liability insurance covers employees that are injured on the job and are unable to work. The insurance coverage will provide a worker with an income while they’re laid up and partially cover their associated medical expenses. It will also help with the rehabilitation process, should it be required. In a similar vein, the same sort of coverage will apply if someone becomes incapacitated due to a job related sickness or disease. You can get business liability insurance through a private or state run provider.
Criminal Liability Insurance
In order to protect your business from an intentional act of sabotage by a disgruntled employee you may want to consider carrying criminal liability insurance. It’s not out of the realm of possibility for someone to become disenchanted with you or your business due to a perceived wrong and take their frustrations out on something you own. This type of insurance will make sure you’re covered for a willful destructive act.
Business Disability Insurance
Carrying added coverage, like business disability insurance, while not mandatory, is a good idea in order to protect you and your business. This type of insurance will provide coverage for you in the event you are unable to work for an extended period of time. Without it, your business probably wouldn’t survive–especially if you’re a sole proprietor. In that case you would be out of business–you would go belly up in no time. However, if you have adequate business disability insurance you will have protection, and the business should continue to prosper.
Business Owner’s Insurance
Business owner’s insurance is a type of coverage that will provide protection in the event you are named in a lawsuit for one reason or another. It will provide separation between your business and personal assets and can also help pay for attorney’s fees. It all depends on the amount of coverage you sign up for.
Professional Liability Insurance
If your business provides professional services, such as the services provided by a doctor or dentist, or many other areas of the medical community, you will need professional liability insurance. Frequently called errors and omissions insurance, or malpractice insurance, professional liability insurance will protect you against charges of negligence or any mistakes you may inadvertently make.
Product Liability Insurance
Another type of insurance to consider is called product liability insurance, which will protect you in the event of a problem arising with a product you make. If a problem develops in the manufacture of that product, or in any area of your business in which you may be considered liable, product liability insurance can provide financial protection and allow you to solve the problem.
This guest post about how to buy small business insurance was written by Bailey Harris. Bailey writes for www.businessinsurance.org.