What insurance policies should the small businesses owner have? Don’t risk everything to save a few bucks. Small businesses, although advantageous, can be very susceptible to many problems. Owners of small businesses must ensure the security of his company by risk insurances. Small business owners sometimes have a negative impression of protection. They think that insurance is only for big time companies who have hundreds of employees and more work being done. What these business owners do not know is that having small business insurance would be beneficial for their little companies.
Different types of small business insurance policy would guarantee the security of various aspects of a small business.
First is the Business Owners Policy which answers to lawsuits regarding the physical harm that arisen in the premises of the secured area. This policy covers the small business’ employees, volunteers, and owners.
Also, some companies may call for an Errors & Omissions Liability Policy. This policy covers lawsuits regarding economic damages that were caused by the owner’s company. Examples of economic losses include the failure of the business to provide timely and efficient service, therefore, wasting the money paid by the customer.
Another insurance policy type is the Commercial Property Insurance. This insurance policy is responsible for the coverage of losses of products from natural calamities, fire, vandalism, and the likes. It also covers the indirect loss of income and profit of the business.
Whether or not the company owns any vehicles, a small business needs an Auto Insurance Policy that would ensure the business owned cars, motorcycles, scooters, and other vehicles for liability. This policy type also secures insurance for non-insured company motorists. Another insurance coverage that is required is the Workers’ Compensation Insurance Policy.
The Workers’ Compensation Insurance Policy provides benefits such as payment of medical bills, grant of awards to employees with disability, and death benefits to the small business’ employees. The last insurance policy is the Umbrella Insurance Policy. Umbrella Insurance Policy can give added protection to the business without adding more cost to the owner. Depending on the insurance company, having an Umbrella Insurance would mean having addition budget in liability protection. This type of insurance policy is often inexpensive given the fact that the coverage of the insurance is a vast scope.
All in all, it is a must for a small business to be insured. Small business owners must get over their wrong impression that their little businesses need not be protected. Small business insurance is important because it will help prevent the business from undergoing costly lawsuits that would take quite a portion of the company’s income.