Small Business Insurance: Options for Small Companies

Small business insurance is an important investment to consider because of the risks involved in owning a business. Depending on the type of business you run and what your potential liabilities are, you may need more than one type of small business insurance. Below is a list of your insurance options as the owner of a company.

  • Business Property Insurance. If your company owns a building, you should make sure that your policy covers it. If you rent or lease the property, it is the landowner's responsibility to provide coverage. Protect yourself from loss of income due to natural disasters. This policy can be drafted to cover your office equipment, records and other things that would prevent you from running business effectively if damaged.
  • Liability Insurance. This coverage will protect you from lawsuits from third parties, and protects your landlord, clients and affiliates from loss. Depending on the type of services you offer, this may include personal injury, products and completed operations, medical expenses and general premises liability.
  • Worker's Compensation Insurance. This type of insurance is required if you have employees. Worker's Compensation insurance protects you from lawsuits if workers are injured at work in exchange for the payment medical expenses.
  • Excess Liability Coverage. This is supplemental to your basic liability coverage and will allow for unexpected liabilities that can amount to millions of dollars.
  • Auto insurance coverage is required for company vehicles. You may choose from liability, comprehensive or collision coverage.
  • Health insurance can be purchased for yourself and/or for your employees. It is not required that you offer this benefit, however it is attractive to many employees. You can customize a health care plan that will suit your company's needs and budget.
  • Business Disability insurance is recommended because this will protect your income if you are unable to work. You may also choose to offer this coverage to your employees.
  • Errors and Omissions Liability coverage is a specific type of insurance that deals with errors that your company makes that creates a loss for third parties. In the medical field is is known as "malpractice." This is one option to consider because mistakes do happen and people are no longer afraid to take companies to court.
Speak to a lawyer, accountant and insurance agent before you make your final decisions regarding your small business insurance options. You will need to review your legal rights, budget and plan options thoroughly prior to purchasing any insurance plan.

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