The day you decide to open a small business is the day you should speak with an insurance agent. As a small business owner, you will come across a lot of situations that put you at risk, even on day one. One small mistake can land you in a world of debt if you don’t have the insurance coverage you need. What are the essentials that you need to include in your small business insurance plan?
It doesn’t matter if you own or rent the property; there is coverage that you need to have. Property coverage protects you in the case of broken equipment, stolen inventory or damaged furniture due to a fire. If the area in which you open up business is prone to mass destructions, you will typically need to purchase a separate policy. Your insurance agent can help you determine whether or not to check into earthquake or flood insurance.
General Liability Insurance
General liability covers a broad range of unfortunate situations that include injuries, accidents and negligent claims. If someone receives a bodily injury and has medical expenses to take care of, or if someone’s property was damaged due to something related to your business, you will need reimbursement for settlement bonds and defending lawsuits.
Workers’ Compensation Insurance
Whether you employ one or many individuals, they deserve the coverage that comes from workers’ compensation, and you deserve the protection as well. Employees and their families can benefit from this coverage if they need financial help for medical treatment due to a workplace injury. If they become disabled because of a workplace incident, they could need salary reimbursement, medical or physical therapy costs. Individuals whose loved one dies on the job can have the costs needed to pay for loss of wages and funeral expenses.
You don’t need a certain quantity or type of vehicle to qualify for auto insurance. If your business owns even one small car, you have to insure it. In most states, a minimum of liability coverage is the law, but it could be one of the smartest moves you make to include comprehensive insurance. This allows your employees more coverage, as well as your company as a whole.
Product Liability Insurance
Product liability claims can happen whether you are the manufacturer or seller of a product. The manufacturer of the parts of the product can also be thrown into the mix, depending on what the specific issue is. Defects might include design issues that are obviously dangerous from the beginning of the creation of the product. They might include marketing issues that relate to insufficient instructions or mislabeling. They could also include manufacturing defects that simply occur as the product is being put together.
Home-Based Business Insurance
Many small businesses start out in a basement or home office. If that’s the case with your company, it’s essential to include home-based business insurance in your plan. Depending on the type of homeowners’ insurance you carry, you could add to the policy, but there are specific things you need for your business as well, making it almost necessary to carry a separate policy.
Putting the Plan Together
Putting your small business insurance plan together is always best achieved with help from the professionals. You might have an idea of what you need to include, but there always seems to be something that business owners overlook. This tends to run them into trouble when they face a lawsuit they weren’t planning on. With the help of your insurance agent, you can try to prevent this situation from happening to you. With the essentials in mind and a knowledgeable professional by your side, you will have all the protections you need with a plan that is perfect for your specific company.
The content on our website is only meant to provide general information and is not legal advice. We make our best efforts to make sure the information is accurate, but we cannot guarantee it. Do not rely on the content as legal advice. For assistance with legal problems or for a legal inquiry please contact you attorney.