The pandemic has compelled a considerable number of people to reconsider their employment situation. As a result, the market has experienced an exponential rise in small businesses in quaint towns and bustling cities alike. With that said, transitioning from a 9-to-5 work week to running your own business is no easy feat. While taking courage, getting a small business successfully off the ground takes countless hours of research and planning as well.
One such aspect that should never be overlooked is insurance. Having a sound and well-rounded policy is what keeps you and your business safe if the tide ever begins to turn in the wrong direction. However, with so many policies and packages, it’s often difficult to find what you’re looking for. Fortunately, this article takes a closer look at all the necessary insurance requirements for your small business!
Property insurance is the first type of policy that banks and insurance agencies recommend for small businesses. These insurance packages will protect your business if the property it’s operating from is damaged or lost due to unforeseen events, such as flooding or fires. What most people are not aware of is that property insurance also covers items inside the insured property. Thus, a property insurance package protects your office furniture, computers, and personal items – everything a thriving small business could not go without.
Businesses that include heavy machinery or expensive technology should consider opting for a specific type of property insurance. Namely, some insurance policies offer coverage for equipment breakdown and damage – an assured safety net when a business is just starting out.
Workers’ compensation insurance
As a small business grows, so does its staff. While there are countless subtle ways to show that you value the employees, having workers’ compensation insurance is definitely on top of the list. This insurance package keeps your employees insured in case of injury and compensates a part of the wages lost due to recovery. In the case of an employee’s death, this policy will also provide compensation to the worker’s family. While it may seem premature for someone just starting out, worker’s compensation insurance is something to keep on retainer once your business takes off. In short, this package will be a reliable and necessary kind of business insurance for your company, either now or down the road.
No one opens a business expecting the worst. Most small business owners start their companies with the hope that they will benefit their communities just as much as themselves. With that said, every business regardless of size is at risk of a lawsuit. Customers may sue a business for an entire variety of reasons. Some may claim to have purchased a faulty product, while others may state that the business harmed them in one way or another.
Because of all these potential risks, a small business must have a sound liability insurance package. This type of policy will cover damages if the company is found liable and compensate for its legal defense expenses. In the case of customer injury, these insurance packages will also cover hospital costs and to some extent recovery.
Errors and omission insurance
The previous three packages covered the basic needs of any small business, from construction to web content businesses. However, more and more start-up companies are in the business of advising, rather than selling physical goods. Because of this, a relatively new kind of insurance policy has emerged – errors and omission insurance. This policy package protects a business in cases where a customer wishes to sue, claiming that the business did not fulfill its obligations as intended. Similar to liability insurance, errors and omission insurance will cover legal fees in the case of a lawsuit and compensate the customer if the insured company is found legally liable.
While a spark of inspiration is enough for a business idea, it is not enough to maintain it. For a small business to blossom into something more, it needs hard work, dedication, and an iron-clad insurance policy. This way, even if you encounter a few bumps along the road, you’ll sleep soundly knowing your business is safe.