If you are just starting out as an owner of a small business, insurance is critical. Without the right coverage, you are only one accident or one mistake from losing your business. The following are a few types of insurance coverage you may want to think about for your small business.
Liability coverage for accidents
This type of coverage is for when there are people on your property, and during their visit, they are injured. If you are to blame for this, you could lose your business. You may be liable for medical bills, missed work, along with pain and suffering. But even if you're not operating out of a physical storefront, you may still need this. For example, if you are working out of your home, and you have clients visiting your office, your homeowner's insurance policy may not cover injuries to these clients.
Liability coverage for errors and omissions
If your small business involves a service in which you are giving advice to your clients, such as financial, or you are performing bookkeeping or accounting, then you need this insurance. It is easy to inadvertently make mistakes that can lead to financial loss for your clients. This can result in a lawsuit. This is why coverage for errors and omissions is a policy that many professionals carry.
This insurance covers all your physical inventory, all your equipment, and anything else that is considered tangible property. In the retail business, it is critical because vandalism, theft, fire, or natural disaster can put you out of business overnight.
Commercial auto insurance
Hired and non-owned auto coverage is insurance for your employee's car when you send one of them on an errand, such as making a delivery. If there is an accident, and an attorney finds out that the driver was doing work for your business, you could be sued. If the accident is serious enough, your worker's insurance policy may be inadequate, so you are sued. In addition, you should consider commercial auto insurance for your personal car. If you're just taking your car to a business location, then driving it home, you probably don't need it. But if you drive your car during working hours, your auto insurance policy is not likely to cover this.
Having the right coverage for your small business will depend upon the type of business that you have. But regardless of the specific business, it is important to have some insurance coverage. Without it, you can find yourself out of business before you had a chance to succeed. And if you ignore its importance, you can find yourself losing all the work you put into your business. To find out which types of coverage is best for you and your business, talk to a local business insurance agency.