There are millions of small businesses thriving in the U.S., ranging from construction to grocery stores to home-based enterprises.
Most entrepreneurs are risk takers and willing to invest their resources into their business. But, as we all know, no matter how diligent or responsible you are, things can go wrong. Some possible catastrophes include natural disasters, damage caused by another person such as crime, theft or vandalism, a personal injury lawsuit, a computer virus or cyberattack, fire loss, equipment breakdown, supply-chain problems, a death or illness and many others.
MOST BUSINESSES NEED TO PURCHASE AT LEAST THE FOLLOWING FOUR TYPES OF INSURANCE:
PROPERTY
Protection may be needed for a building or storage location, and you definitely want to protect your merchandise and business equipment. You also may want to consider business interruption income coverage that would help pay your expenses following damage to your business property.
LIABILITY
Anyone can sue you for any reason. A good liability policy will provide legal defense in the event of a mistake or accidental damage. A regular liability policy will not cover “your work,” so you also will want to consider adding professional liability coverage if you build, design or manufacture items as part of your business.
BUSINESS VEHICLE
Different coverage is available whether you own, rent, lease or drive personal vehicles for your business. Be sure you are covered correctly. A regular personal auto policy does not protect you when your car is used for business or for making deliveries. You will need to add coverage or possibly purchase a separate policy.
WORKERS COMPENSATION
As an employer, you are legally obligated to ensure a safe workplace and provide medical care for staff who may be injured or become ill while working. You will be responsible for the employee if he or she is injured on the job for the rest of that person’s life, so workers comp insurance is a very valuable coverage, even when it is not mandated based on your business size.
HOW ABOUT A HOME-BASED BUSINESS?
For a home-based business, the right choice will depend on the nature of your business, its annual revenue, and the amount of coverage required. Protection options include:
- Endorsement to your homeowners policy
- In-home business insurance policy
- Businessowners policy
Meet with an insurance professional to determine the risks and proper coverages to protect you and your business, no matter how big or small.
