Insurance and Small Businesses
Are you considering starting a new business or getting one up and running? If so, there are dozens of moving parts in play, including insurance. Protecting both your personal assets and business from potential losses is critical, even if you operate a small home business.
Here are several types of insurance that deserve a look:
General Liability — General liability can provide broad coverage in an array of situations. These may include someone getting injured at your business location, damage caused to a customer’s property or damage resulting from the use of your product or service.
Professional Liability — Also known as errors and omissions (E&O) insurance, professional liability insurance helps with negligence claims related to professional performance. Therapists, doctors and attorneys are just a few professions that are required to carry a professional liability policy.
Business Interruption — If a disaster causes an interruption of business operations, this type of insurance may help out. Coverage can include the revenue you could have earned (based on financial records), as well as bills like electricity that continue despite a temporary standstill.
Commercial Property — This insurance option may be useful for commercial locations, as well as computer equipment, documents, money and more. It helps protect against loss or damage due to unexpected events, which may include vandalism, severe weather and fire.
Workers’ Compensation — If an employee is injured or dies as the result of his work, workers’ compensation may be beneficial for medical treatment, disability or death benefits. Situations that may lead to workers’ compensation can range from slip-and-fall injuries to medical conditions like carpal tunnel syndrome.
Key Person — This type of insurance helps protect a business from potential financial losses if crucial personnel die or are unable to work for an extended period. The term “key persons” may include individuals directly associated with the business whose loss would cause financial hardship, like a founder or CEO.