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Small-Business Owners: What Your Insurance Policy Needs to Cover

Small-Business Owners: What Your Insurance Policy Needs to Cover
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By    |   Friday, 01 September 2017 03:51 PM

Insurance is essential for all small business owners. Depending on the type of enterprise, policies are available for different reasons. Coverage protects a business from accidents, injury, claims against products or services, and other possibilities.

Whether starting up a business or planning a venture that looks like it has tremendous opportunities, small business owners need to look at policies that safeguard them from many risks they may face in the future.

The one thing an entrepreneur doesn’t need is a lawsuit or damage that could destroy the business overnight.

These six types of insurance help protect your business while keeping it thriving:

  • Property — Sometimes referred to as commercial or business property insurance, the policies protect equipment, furnishings, inventory records, computers, and other materials on the property in case of fire, storms, or wind damage. Policies also offer protection against vandalism and civil disobedience, according to azcentral.com.
  • Liability — Lawsuits may arise from injuries due to claims of a dangerous environment, customers being hurt while at your business, a defective product that causes harm, or other injuries. Liability insurance can cover these issues as well as legal expenses or medical bills, the Insurance Information Institute points out.
  • Workers compensation — These policies help maintain a healthy workforce while keeping employees and their families protected. Workers comp covers medical care and lost wages. The policy may also provide compensation to families in case of death. Most states require workers compensation insurance when a business has from three to five or more employees.
  • Business owner’s policy — Some companies offer insurance plans that bundle packages. A business owner’s policy, or BOP, includes general liability and commercial property insurance, according to Insureon. Small-business owners are protected from lawsuits for various reasons as well as property damage or physical injuries.
  • Business vehicles — Many auto insurance companies exclude coverage for vehicles damaged when used mainly for business. Business vehicle insurance covers vehicle damage, property damage, and bodily injury for vehicles owned by the business owner. Policies vary and may include repairs or replacement of damaged vehicles.
  • Home-based businesses — Since homeowner’s policies don’t usually cover business losses from the home, riders are available for homeowner’s insurance to protect against professional or commercial liability. A home-based business insurance policy may also be available.

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Insurance is essential for all small business owners. Depending on the type of enterprise, policies are available for different reasons.
small, business, owners, insurance
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2017-51-01
Friday, 01 September 2017 03:51 PM
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