Small Business Insurance – Do You Really Need It

by Michele Postler, Monday, January 7, 2013

The short answer is yes, you need small business insurance, basically any business insurance that will cover your business contents and operations. If you have employees you definitely need some sort of insurance, as you are required to pay into Workers Compensation.

 
Buying insurance when first starting as business is an expense that most people do not want to fork out, but if something like Hurricane Sandy were to happen, then your means to make an income and everything you worked so hard to build could be completely destroyed.

 

Catastrophic Events

If you do business outside your home or even in your home you should have building insurance to cover the loss or damage to the building. The contents inside your building should also be covered. An addition to this policy is the business interruption insurance that provides you income during the time that you aren’t able to run your business in a normal course due to a disaster. This amount covers you for the loss of income during the time that you are cleaning up the mess and helps determine which businesses will come back after a disaster or not.

 

Liability Insurance

If you have a company car or manufacture products to sell to the public, you are responsible for the publics’ safety when using that product. If the driver of your company car were to injure another in a crash it could be disastrous for your company. Without liability insurance if a person were to fall on your property you would be held responsible for their injuries and without this insurance you would have to foot the entire bill.

 

Theft

Business are huge targets for thieves, as they can just go in one door and take many computers electronics and personal information in one place. Make sure to take safety precautions to protect your business from theft. Some ways to deter theft from your place of business is to ensure some lighting is left on, install a security alarm, ensure windows are not easily broken and make sure cash is not visible from the outside if you are dealing in cash. Theft insurance will cover you for the loss of electronics as well as repairs to damages caused by the break in.

 

Professional Liability Insurance

Whether founded or not, people are more willing to sue a business than ever before. Even if you are not guilty of the claim it could cost thousands of dollars to defend your business in any litigation.

 

Business Owners

There are many insurance products out there to protect the business but don’t forget to insure the person or people behind the business. If some illness or injury were to befall on the business owner can it survive? Personal disability insurance is important in considering business insurance as well.

 
When starting a business, make sure that all the hard work put in to building it doesn’t get lost by something that could have been prevented by buying business insurance. Rates and quotes can be found online for initial shopping considerations.