If you are starting a small business, you need to make sure you protect your small business with the right insurance. Your small business is an investment you need to protect, and insurance is often the best way to protect that investment.
#1: General Liability
The first thing you need to start with is a general liability policy. Every business, no matter what type of business you are running, should have a general liability policy in place.
A general liability policy will provide you with a legal defense if your business is sued for a wide variety of reasons, from defective products to physical damage due to an accident at your store to property damage that occurred at your place of business.
You may want to think that you will never face any legal action, but you can't guarantee that. A general liability policy will protect your business if it ever faces legal action.
#2: Commercial Property Insurance
If you are running your small business out of property separate from your home, you are going to need to invest in a commercial property insurance plan. This type of plan will cover your building and the things inside, such as equipment, tools, and electronics, from most types of damage.
Keep in mind most commercial property insurance policies do not cover flood or earthquake damages; you have to purchase that insurance separately, and it's available depending on where you live and the perceived risk of a flood or earthquake.
#3: Business Interruption Insurance
Next, you need to purchase business interruption insurance. This type of insurance is designed to compensate you for lost income when something happens that impacts your business. Here are a few examples:
- Maybe the business next door burns down, and the resulting fire and clean-up cause your business traffic to decrease.
- Perhaps an emergency is declared in your state, and you lose business.
- Maybe a flood hits your area, not physically impacting your store, but it does impact your business.
Talk to your insurance agent to find out what types of business interruption are covered under various plans.
As a small business, it is important to protect your business with the right insurance coverage. You need, at the very least, to invest in a general liability insurance policy, a commercial property insurance policy, and business interruption insurance. If you are employing others, you will also need to look into worker's compensation insurance and disability insurance. Learn more by contacting business insurance providers.
