Risks in a Small Business

There are several risks in a small business that is recommended be protected by insurance. Here are some of the risks and recommended small business insurance types to protect your business from the risks.

Business Property Insurance

With business property insurance, your policy should consist of a broad array of coverage that will protect you from a variety of losses. Your business property insurance policy should provide coverage for buildings you own, or if you lease premises, the landlord should provide the coverage; business personal property, such as tables, desks, chairs, and office equipment; loss of income; earthquakes, floods, and other natural disasters.

Always keep in mind that an all risk small business insurance policy can be structured to cover all office equipment, including computer hardware and software, as well as any important records. As mentioned above, loss of income should always be included in the policy in order to prevent financial ruin to your business.

Business Liability Insurance

A thorough general liability small business insurance policy should be designed to provide coverage to third parties for all of the following – personal injury and advertising coverage; fire legal liability, products and completed operations; medical expenses or medical payments; and of course, general liability for your premises. For example, if someone slips on the rug you have in your office, this type of small business insurance will protect you, should that person become injured and decide to sue your company.

Some forms of business liability insurance may exclude products and completed operations and/or personal injury and advertising coverage depending on the services your business provides. If this is the case, you may want to look into professional liability insurance, malpractice, or Errors and Omissions policies that may be available for your type of business. For instance, if you are an attorney, engineer, or doctor, you will definitely want the Errors and Omissions policy added to your small business insurance package – as it will cover the errors and omissions that might result in suits against your company. People in these types of profession are held to a higher degree of care or standard, thus the reason why they would benefit from this added small business insurance.

Worker’s Compensation Insurance

A crucial type of small business insurance for those businesses with employees, worker’s compensation insurance will be mandatory. If you are a startup business, you may find that the State Compensation Fund will well accommodate your needs. As your business expands, you can then seek better prices for this small business insurance coverage.

Some worker’s compensation insurance companies also provide additional services such as risk management and loss control services that may be beneficial to your business operation. Such services are especially helpful in keeping down claim costs over the long term.
Also good to note is that the small business insurance company should always assume 100 percent of the worker’s compensation insurance risks.

Other Small Business Insurance

Other insurance types for small businesses include auto coverage for company vehicles, such as liability, comprehensive, collision, and uninsured/underinsured motorists; varying health insurance plans, which will help give your company an edge when hiring good employees; and the insurance not many people think of – an employee handbook. A good employee handbook or guide will help prepare your employees to know what to do, who to call, and where to find it information so as to maintain the consistency of your business when you cannot be there.

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