Insurance for Small Business Owners
Protect yourself and your company with these common types of coverage
According to the National Bureau of Labor Statistics, a small business is being operated in three of every 10 homes. Unfortunately, if these home businesses aren’t properly insured, or if the business owner is relying on his or her personal insurance to protect business interests, major obstacles could arise down the road.
If you’re running a small business, consider protecting your company with the following business insurance policies:
- Cyber risk: Cyber risk insurance protects your company against costly security breaches and liability claims from clients due to data theft, Internet defamation, network problems and other potentially expensive risks involving your computers, network, customer information and the Internet.
- Business continuation: Should your business location suffer damages due to fire, hurricane or flood, you may no longer be able to operate the business from that location. But chances are good you’ll still need an income, so business continuation insurance offers you the means to pay for a temporary site and may also pay some of the continuing expenses that your business has, even while it cannot operate.
- Commercial property: If your business owns real estate, furniture, computers or any other property, you need commercial property insurance to protect against the cost of insurable damage. If you’re working from home, remember that your home insurance policy does not protect your business property unless your policy has a special rider stating that it does.
- Commercial flood: As with home insurance, commercial property insurance doesn’t cover damages associated with flooding. If your business is located in a flood zone, consider adding commercial flood insurance to your insurance portfolio.
- Workers’ compensation: When one of your employees is injured on the job, workers’ compensation insurance will pay his or her expenses and salary until he or she is able to work again. Without workers’ compensation insurance, you must prove that you can self-insure this responsibility, and that may place greater restrictions on the way you can use your cash reserves.
- Life insurance: Life insurance can be helpful to your business in several ways. A key-person life insurance policy can provide a death benefit to your business that allows your family or partners the resources they may need to find a replacement for your skills and knowledge. A life insurance policy purchased to fund a buy-sell agreement can ensure that your heirs receive proper payment for your share of the business after your death.
- Liability insurance: There are many different types of liability insurance that a small-business owner can purchase. General liability insurance can protect against customers who are injured or have damaged property as a result of negligence or actions by your business or employees. Professional liability insurance can protect you against claims of damage due to professional negligence. Other types of insurance can include errors and omissions for financial professionals and malpractice for those in the medical field.
- Commercial auto: Even if you use your personal vehicle for business purposes, you should have commercial auto insurance. If your car is damaged or an individual is injured while you are operating your personal vehicle to run errands for your company, get to meetings, or make pickups and deliveries, your personal insurance policy will not cover damages.
There are many intricate insurance decisions that a small-business owner must make in order to preserve his or her livelihood and protect his or her interests. When you’re ready to start your small-business insurance planning, stop by or give us a call today.