Running a small business without proper insurance is like bungee jumping without a bungee cord. There are so many types of insurance coverage; it may be hard to decide what the right type is for you. Below we will discuss some small business insurance comparisons. You will want to make sure that you pay for the appropriate coverage for your type of business.
Property Insurance – this covers your business in the event of fire or other natural disasters. In addition, it will protect you from a losing a lot of money if the business is robbed. Home business owners need to have additional insurance as homeowner’s insurance generally does not cover a home office.
General Liability Insurance – this covers your business against any legal expenses stemming from accidents, injuries or charges of negligence. Generally is it best to have both this and property insurance for your company. This insurance will cover if someone is injured on your property, but it does not cover employees.
Product Liability Insurance – this type of insurance is for companies that produce some type of “goods”. It will protect you just in case the product that your put on the shelves is unsafe for one reason or another. This differs from general liability, this protects you if someone becomes injured or sick due to your product.
Commercial Auto Insurance – if you have company vehicles then you will need to purchase this type of insurance. The coverage works the same as personal auto insurance, but personal insurance does not cover commercial vehicles.
Workers Compensation Insurance – you must have this type of coverage. Some states even make it mandatory to carry this insurance. This protects you in case an employee gets hurt while working for you, but only applies of the person is “on the clock”. Injuries at that occur while at home or away from work do not apply.
Health, Life, and Disability Insurance – this type of insurance is provided directly to the employee. You can deduct a portion of the cost for this insurance directly from the employees pay, as long as they agree to the coverage. It is not mandatory to offer this type of insurance, but you will increase your employee’s loyalty.
Casualty Insurance – this is different from property insurance, as this type covers you if you have sections of your business that travels to different areas. Property Insurance only covers the physical building that the business is located. A business that has a mobile office, such as construction companies, or contract painters, should consider this type of insurance.
It is important to find the insurance that best suits your business. This will save you significant amounts of money and will also let your mind rest with easy knowing you are covered in case something happens.