In any business, risks cannot be ruled out. In case of a small business, already a small risk can make a huge impact on the growth and sustainability of the business. This is more so with respect to finances as small businesses, by their very character, are empty of strong financial sustain.
If you are a small business owner, you need to seriously consider taking business insurance to protect your businesses from unfortunate events that cause financial crisis.
Besides providing financial sustain during unfortunate events, insurance helps in increasing the credibility of your business among your employees (crucial part of your business) – they feel secured knowing that they are covered under insurance policy.
While choosing an insurance policy, estimate and clarify the risks that are likely to affect your business considerably. shared risks for any business include, damage to business character, life hazards to employees, and public law suits. None of these is a small liability that you can provide to overlook.
Basic types of business insurance policies:
There are different types of insurance policies covering different types of risks; you can either choose one policy or combine a few of them to make a consolidated policy that covers every risk your business might confront. Here are some basic insurance policies that you can choose from:
Business liability: Your business is always at risk of facing law suits from third parties. There can be instances that make your business the subject of a lawsuit – a customer trips on a torn carpet in your office, a customer falls sick using your product, an electrical short-circuit that causes fire and damages your landlord’s building etc. These limitations usually consequence in huge compensation claims. In such situations, having business liability insurance protects you against all these risks. Business liability insurance generally covers medical expenses and legal fees.
character insurance: You don’t want to mess up with your business character. Do you? So, make sure that your business character is covered properly. character insurance for your small business covers the fixtures, furniture, the inventory, and other physical assets of business. character insurance protects the character against the damage, theft or loss.
Auto insurance: You need commercial auto insurance if you use a means solely for your business. You should get a commercial insurance policy if your means has commercial tags on it. Auto insurance covers risks of damage to the means caused by an accident or vandalism. It also protects you from the third-party liability claims if your means is involved in any accident.
Workers’ compensation: As an employer, it is your responsibility to take care of your employees at workplace. If any employee falls sick, gets injured or dies while working, as a business owner, you will be held accountable. You need to take care of his medical expenses. Here, workers’ compensation insurance helps you by covering the risk of injury to workers and the consequent medical expenses, etc.
Not buying insurance would put your business at greater risk. It is also not financially sensible to ignore the importance of insurance. Working out the right kind and the correct amount of insurance coverage is quite difficult going by the variety of risks to your business.
Hence, approach a good insurance broker to get the right insurance coverage for your business.