Any entrepreneur and/or new business owner have the general knowledge on what type of material he wants to use and how the final product should look like, spend a long time looking at samples and picking the perfect spot on the store to place a specific object because he knows it will give the right vibe to the room. Often this type of focus is neglected to an also important part of the business and that is insurance, why? you may ask, well insurance is not necessarily the most exciting subject to talk about while you have in your head 10.000 different thoughts about your actual business.
The reality is that having a business is not only investing money but also time, effort, days thinking about the perfect idea and a lot of planning, the idea of all of that going to waste for neglecting getting small business insurance coverage or worst, for plain ignorance is Ludacris. Now, I am going to help you clarify the basics of insurance policy for small business then you can take a moment and weigh the importance of those, and all the headache insurance can save you.
#1 Small business needs General Liability Insurance:
Nowadays we live in a litigious-happy society. Sometimes even paying attention to the slightest details and no matter how careful you as a small business owner are, there is always a chance for your business to be sued. As an owner you could lose everything if a court rules against you, the losses can go as far as your personal possessions. Hence the importance for every business owner to have a Small Business Liability Insurance.
A General Liability policy covers a grand variety of claims. Think about your General liability coverage as the baseline of the complete full coverage and risk management of your new business.
General liability insurance covers the business from:
Bodily Injury: that means an individual that suffers an injury for which you will be legally liable.
Property Damage: when you cause someone else’s property damage while you were operating your business.
Personal Injury: when your business is sued for libel or slander or your business falsely advertises.
Rental Property Damage: when you or any employee welcome to a location rented by you cause any damage in said property.
Medical Expenses: when reasonable expenses paid for bodily injury caused by an accident, no matter of fault.
General liability insurance guards your business on daily operations and daily risks.
#2 As a small business must have commercial property insurance:
Commercial property insurance is fairly common insurance in the small business insurance policy world, but it’s not a cookie cutter one. Coverage rates may vary from business to business depending on the nature of it, the business income, the number of properties, the number of employees and the valuation of assets.
Commercial property coverage insures business against losses due to certain covered events, like fires, theft, vandalism, and natural disasters. Business owners thanks to this insurance coverage can protect their valuable assets, like building either leased or owned, tools, equipment, machinery, even inventory. A small business insurance quote may vary from 700$ to 1100$ per year in a premium policy.
#3 Worker’s Compensation depending on where you are is mandatory:
Besides the fact that Worker’s Compensation is mandatory in the majority of the states, this policy will provide benefits to the employees who become injured or ill on the job. Worker’s compensation insurance will deliver the safety that even when an ill-fated terrible event of a personnel demise due to a work-related grievance or illness, the benefits of this policy will be granted to his or her family.
#4 What about Commercial Auto Insurance?
A Commercial Auto Insurance is a liability and physical damage protection for vehicles, necessary when those vehicles are used for business purposes. Most people think wrongly that having personal car insurance will cover for all the little “mistakes” on the road, but sadly they encounter a big NO when placing a claim for using their car on a business endeavor and having an accident on the road. Something important to remember is that personal car insurance does not cover vehicles used for business, hence the importance of commercial auto insurance.
Something important to remember is that even when Insurance is often considered an expense, it’s usually a tax-deductible expense. Anyone who is in their way to start a new business or already on the developing stages should invest time and effort (and let’s be honest, some money) in finding the right insurance coverage, the best way to learn about it’s speaking with a reputable agent from a respectable broker, as soon as you understand what you need you can start looking for the best prices on different insurance companies, that suits your budget and insurance needs.
Always making sure that your personal liability is covered by a small business insurance policy, neglecting this may cost you everything you have been working so hard on.