Insurance for Small Business Owners

by Redeeming Riches on February 22, 2017

When you start a new business, you may realize that your company’s finances are difference from your personal budget. There are a number of things to learn new when it comes to dealing with the running of your business and its finances, and this is true of insurance. Many small business owners may feel that their property and auto insurance for personal use covers the running of the business, but you may find that your insurance needs as a small business owner differ significantly from those of a regular home or vehicle owner. Talk with an insurance agent and do your own research to see what small business insurance you need.

3 Types of Liability Insurance

You may be familiar with liability insurance when it comes to auto coverage. The small business owner should be aware of three different types of liability insurance. The first is general liability insurance that is needed when there are claims of injury or negligence. These don’t simply apply to physical injury but also cover libel and slander. Product liability deals with complaints against real or perceived defects in products that can cause harm.

Professional liability involves mistakes or omissions in your service or products. The latter is similar to malpractice insurance for physicians. You may not need all of these types of insurance or may require or certain varieties depending on the kind of business you run. Local insurance agents can give you advice on what kind of liability insurance you need.

Different Kinds of Property Insurance

There is no question that as a small business owner, you will need property insurance. The question is what kind of property coverage is right for your business. Like home insurance, commercial property insurance covers damages caused by inclement weather, fire, and vandalism. You can opt for an insurance policy that covers a large number of incidents except those that are specifically listed or disaster specific policies that ensure losses from the particular kinds of disasters that are listed.

All risk policies cover problems that can happen to many small businesses, whereas peril-specific insurance policies cover specific problems that may be affected by where you operate. For instance, if the place where you run your business is vulnerable to hurricanes, it is worthwhile getting hurricane insurance.

You may feel that your home insurance will cover your home-based business, particularly if you run a small operation. However, after further investigation, you may find that your regular homeowner’s insurance doesn’t cover business use. You may have to supplements your regular insurance with additional policies so that your coverage is appropriate for your small business.

Auto Insurance

If driving is required to run your business, even if it is only for transporting items from time to time, it is best not to assume that your regular auto insurance will cover vehicles that are driven for your business tasks. In addition, you may have delivery people driving company cars. You will need to figure out as soon as possible a solution for these employees and how they and your company can be protected every time they get behind the wheel.

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