If there’s one thing about the business world most people can agree on, it’s that purchasing business insurance is a must. The thing is, all businesses and their setups, clientele, and needs are different. This can make it difficult to decide which types of insurance your small business will need to keep itself safe.
There’s no correct answer to the insurance question, but decisions involving insurance and coverage should always involve extensive research and consideration. Why not start now?
General Liability
In the event that someone is hurt or business property is damaged by the fault of an employee or the business itself, liability insurance can be your best friend. General business liability insurance can cover legal fees, medical costs for those injured on the property, damage fees, and other expenses that can pop up with a personal injury accident or lawsuit.
The amount of coverage required can vary depending on a business’s size, type, and the risk of injuries or damage occurring on the business’s property. It always pays to discuss this information with your broker or registered agent to determine how much coverage is needed.
Property Insurance
A rare tornado rips through town, making your business property and equipment unusable until repairs are made. Those repairs will be paid for straight out of pocket if you haven’t purchased property insurance. Property insurance can cover anything from mold that you didn’t notice when choosing that charming, old office space, to natural disasters like floods, earthquakes and tornadoes. Be sure to consider your business’s location when choosing the amount of coverage that’s right for you.
Employee Related Insurance
Employees are the lifeblood of the business; they also require specific insurance to protect both their wellbeing and that of the business. Even if you do not have many employees, keeping them at the forefront is important. There are several types of insurance that can be purchased within this category. A couple of examples include:
- Workers’ Compensation – This area offers compensation to employees who are injured on the job and keeps the situation out of the courtroom.
- Employee Benefits – As stated before, the importance of employees cannot be overstated, and it’s important to provide benefits for them, especially in the insurance department.
It’s obviously important not to under-insure your business, but over-insuring can create unnecessary expenses. Brainstorm and think through risks and benefits to determine the amount of coverage your business needs before making a purchase to ensure the highest satisfaction.
Have more questions about starting and running a business? Continue browsing the MaxFilings blog or incorporation knowledge center for the business answers you need!
