Last Updated on Apr 7, 2020 by James W
When you own a business, you need to protect it, and getting the right insurance coverage is important for your continued success. Fortunately, you can choose from a number of coverages if you want to protect your business. Do you know the coverage options that you can choose for your business?
Here are some things that you should consider when buying an insurance policy for your business:
Small Business Property Insurance Coverage
The most important reason for buying business insurance is to protect the material investment that is your business: the tools that you need to make your business and your merchandise work. What would happen if a fire destroyed your business? It would render your equipment and merchandise unsellable and without insurance, you cannot do much about it.
The property coverage that business insurance provides will help to protect your physical property from specific causes, which vary depending on your policy. The coverage might protect your actual building and the inventory, furnishing, and equipment. Moreover, it might also cover costs such as cost of removing debris and equipment breakdown.
Basics of Business Owners Policy
The main protections that business owners’ policy provides include:
Small Business Insurance Liability Coverage
Even if you are very careful, you might find yourself in situations where people file a lawsuit against your business. For this reason, you should be prepared for the eventuality.
The SBA lists three kinds of liability coverage:
Product liability coverage – if your company sells or manufactures products, you need this coverage to protect you in case your products cause damage/injury or are defective.
General liability coverage – this coverage protects your business in case you are sued for claims of negligence or accidents. For instance, if an individual is injured on your premises and decides to file a lawsuit, this coverage should cover the related costs.
Professional coverage – if your business provides services, this coverage is for you. It protects against negligence and errors. A great example of professional coverage is malpractice insurance, which doctors have to carry.
Employee Small Business Coverage
Depending on the number of people you have employed, there might be other insurance considerations. For instance, employment practices liability coverage will protect you in case a former employee decides to file a groundless claim.
All states excluding Texas need businesses with a certain number of employees to carry compensation coverage: it helps to protect your business in case one of your employees is injured on the job.
Business Vehicle Insurance Coverage
Just like with your personal vehicle, your business vehicles need to be insured. Business car insurance can help you to protect your business against any liability that arises from accidents caused by your company car.
Data Compromise Insurance Coverage for Small Businesses
Data breach or data compromise coverage provides a great way of protecting your business. It protects it against associated legal costs when customer or employee personal data is stolen or released accidentally.
As you shop for an insurance policy for your small business, you should think about this:
– If you run a business from your residence, your homeowner’s insurance policy will offer limited coverage for your business merchandise. Therefore, you should consider buying business insurance policy to protect your tools and supplies.
According to the owner of insurance.me, you may have more coverage options to consider depending on the kind of business you run: different companies have different coverage needs. As a small business owner, you will face a number of unique circumstances and challenges.
You need to have personalized and secure business insurance if you want peace of mind as well as invaluable protection.
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