Small business insurance is an essential category of insurance which protects your company against the potential economic impact of different unexpected liabilities and risks you will come across on the job. Many small business owners face several risks every day at work, and small business insurance helps you better prepare for these risks while also protecting your bottom line. You don’t have to own the biggest or best-performing business in the area to be able to benefit from small business insurance. There are many different kinds of small business insurance available, and they protect against a variety of different liabilities and risks you may come across in your daily operations. The key is to understand which insurance products and coverages are best for your business, as well as knowing what to look for in those products.
The first area of coverage which most small business insurance covers is general liability insurance. General liability insurance is designed to protect your company against claims made by customers, former employees, or others who come into contact with your company’s products or property. Typical general liability insurance coverage includes property damage, bodily injury, and advertising injury, but it may also include other items as defined by your specific product manufacturer. General liability insurance typically also includes property damage that occurs when a customer comes into contact with your product, and it may also protect you from liability for actions related to your own products or those of your affiliates.
When you get covered by general liability insurance, you need to make sure that you’re properly covered.
This is why it’s often a good idea to get small business insurance quotes from several different insurance companies before deciding which one will offer you the best coverage. It’s easy to find out what a particular company’s limits are, how much they’ll pay out for total compensation, and so forth, but you won’t know for sure until you ask the question “What does small business insurance cover?” If your business has certain unique products or unique service offerings, these may not be included in the standard policy.
Another area of coverage that you should be aware of is professional liability. If you provide professional advice or service to customers, this can often lead to legal troubles for your company, and small business insurance cost is not cheap. You may have to pay a bit more each month, but this can be a good idea simply because it gives you protection in the event that you damage someone’s property because you were too busy thinking about another task to notice. General liability insurance will likely require you to obtain an appraisal of your customer’s home, car, or other item of property to determine its value, and to file a report with the state’s attorney general. You’ll also probably need to file a statement with your local government, as well.
Medical expenses and workers compensation help protect your employees when they are injured on the job, but it’s important to know whether this type of insurance covers you. Workers compensation helps protect your employees if they are injured on the job, and can sometimes cover repair or replacement of the equipment that was damaged. In addition, medical expenses help you pay for the costs of prescription drugs, doctor visits, and other healthcare provided to your employees while they are out of work. Small business interruption insurance typically doesn’t cover these kinds of expenditures.
Professional liability insurance is generally required by states
Professional liability insurance is generally required by states in order to protect yourself against professional errors, negligence, and other errors or misconduct. This type of insurance protects you from damages that you might be held responsible for if you’re an employee, contractor, or business owner and you end up making false claims for pain and suffering, disability benefits, or similar benefits in your professional capacity. For example, if you’re a realtor and you make a claim for pain and suffering that you didn’t suffer, you could potentially be sued. Errors and omission are a big problem in the real estate industry, especially in the case of contractors. If a contractor makes professional errors, your business could be held liable for those errors, which is why professional liability insurance is such a critical necessity for contractors and other small business owners.
One of the most important types of insurances is commercial auto insurance, which covers your company’s vehicles for damage incurred on the road. You can be sued for injuries to employees or passengers if your company’s business equipment is damaged or stolen. It covers losses that are caused by vehicle collisions, acts of nature (like floods and storms), or human injury. Some of the exclusions may include bodily injury and death occurring through negligence or intentional misconduct.
If you have a retail outlet, an important aspect of liability insurance for small businesses is employer liability coverage. This kind of coverage helps protect your employees when they’re injured while working on your premises. The rules governing employer liability coverage are very specific, but you can get detailed information about it by contacting an insurance agent. Employer’s liability is often required by the government in order to protect small businesses that operate in residential areas from frivolous lawsuits filed by neighbors who feel the businesses have neglected to take care of their properties.