Small business is absolutely essential to a thriving and expanding economy. People tend to assume that large corporations are the backbone of an economy; they don’t understand the fact that all small businesses combined produce more assets and hire more employees than large corporations.
If you are going to get into the entrepreneurial spirit and start your own business there are a lot of strategies you should implement to ensure that you remain successful. Finding the right insurance policy that helps you mitigate risk without breaking the bank is one of the most important features of any business plan.
There are many policies that the small business owner must consider:
Commercial General Liability
This is generally the first policy a business owner needs to look into as it offers the most general coverage. A commercial general liability policy protects your company from claims that deal with property damage and bodily injuries on the job.
This type of policy offers coverage for job site accidents and insures your company against claims when property is broken or ruined. Without a policy like this someone may slip in your store, sue you, and close down your business. A general liability policy is a good umbrella policy that pretty much covers everything, it’s a great safety net and a perfect coverage starting place.
Small Business Property Insurance
After you get general liability coverage property insurance can further insure the actual physical structure that your business is based out of along with all of the property on the premises. This type of protection is generally thought of to protect the building against things like fires or floods. Remember, this policy will not cover any property that leaves the location where the business is located.
An auto policy gives you coverage for all the vehicles that you use for your business. This policy is different from your personal one because it typically requires much higher coverage limits. These policies generally encompass general coverage along with covering medical payments, collision, uninsured motorist coverage and towing.
If a member of your team is ever going to operate a work vehicle then you must make sure to get a commercial auto policy, it is an absolute necessity.
This type of coverage, also known as workman’s comp, helps protect your business from claims that state an employee was hurt while working on the job. These policies can get pretty pricy, but that is only because employee payouts are generally very high when they are hurt at work.
Without this type of insurance you and your business are personally on the hook for an employees medical bills, expenses and any lawsuits pertaining to the injury.
Getting the proper coverage is an important step towards making sure you have a successful and profitable business. A good policy will protect your business from claims that could bankrupt the uninsured. When you get a policy make sure to read through it and understand the ins and out of what it actually covers.