To run a successful and thriving
business, you need to insure it. Insuring your business gives you peace of mind
as you’re covered in case of any uncertainties. You must know that your
business is exposed to various risks right from the day it opens its doors.
Having business insurance will
determine either success or failure of your business during a crisis. According
to research, 44% of small businesses operate without insurance for up to
a year. This exposes them to various risks that can cause losses.
You need to understand the types of
small business insurance to know where to start when you decide to take one.
Let’s have a look at the options available for you as a small business owner.
General
Liability Insurance
General liability insurance protects
all the company assets against getting sued by a third party. The insurance
helps cover legal costs and any award or settlement that the court may impose.
The general liability insurance will
cover you from claims that result from different business activities or
operations. These may include property damages, bodily injuries, libel and
slander, and false advertising.
The insurance will cover all legal
costs, including non-monetary damages, compensatory damages, legal defense
costs, and punitive damages. The insurance will cover all the costs, whether
filed by a class-action lawsuit or an individual.
Workers’
Compensation Insurance
If you have employees, you should
add workers’ compensation insurance to your policy right away. Failure to do
this can get you in trouble with the authorities for non-compliance as this is
a requirement by law.
Workers’ compensation covers medical
treatment, lost wages, disability, or death benefits if an employee is injured
at work. Even when your business is not high risk, injuries can still happen to
them within your premises.
These can even be slip and fall
injuries that can result in a compensation claim. Or, if you’re running a
hotel, the insurance may cover your employees against burns or cuts. Talk to PolicySweet
to help you with this insurance if you’re running a food shop.
Unemployed
Insurance
This is another government required
insurance that every small business must have to cover employees in case of job
termination. However, this type of insurance is not purchased from an insurance
carrier. This is paid as part of state unemployment taxes (SUTA) and federal
unemployment taxes (FUTA).
As a business, the amounts you’ll
pay as tax for this type of insurance depend on the number of employees. It
will also depend on whether you’re new to the business or have been operating
for a while. When your employee is out of work, they’re allowed to apply for
this type of insurance benefits.
Professional
Liability Insurance
Professional liability covers any
mistakes that can occur in the professional services that you cover. You or
your employees can make this mistake, and it will help protect your finances if
such happens.
Errors and omissions insurance will
also cover you when your employee gives clients advice that causes them to lose
money. The customer can sue the company for such mistakes; hence the insurance
comes in handy to pay the legal fees. If you’re in the field of law or
medicine, you should get this type of insurance.
Health
Insurance
Health insurance provides health
insurance or medical cover for employees. If you have less than 50 full-time
employees, you should not get group insurance. If you have more than 50
employees, you’ll need to provide them with group health insurance coverage and
pay at least 60 percent premiums.
There are strict requirements for
this type of insurance. For instance, a business needs to have at least one
common-law employee who’s not in any way affiliated with the company. The
company must be registered and adhere to state regulations.
Vehicle
Insurance
If your business uses company
vehicles, you should insure them to protect your business against any liability
in case of an accident. You should insure your vehicle against third-party
injury. Comprehensive insurance should also cover the vehicle against an
accident.
If you have employees who use their
vehicles to run business errands such as product delivery, the business vehicle
insurance will cover them.
Disability
Insurance
This is another government required
insurance which pays employees a percentage of their income in case they get
into an accident and unable to work. This kind of illness or injury doesn’t
have to be work-related to attract this kind of insurance.
An example of people that this
insurance can cover is a pregnant woman after they deliver. This insurance can
take the form of short-term disability insurance (SDI) for about three to six months
after they get injured or fall sick.
There is also long-term disability
coverage, which can last until the employee goes back to work. Disability
insurance can make you a more competitive employer and give your employees some
peace of mind knowing that they’re covered.
Commercial
Property Insurance
This insurance covers your business
equipment, inventory, and office space against theft, loss, and damage. If you
have a brick and mortar business, you must have commercial property insurance.
It covers your business against damages cost by fire, theft, vandalism, or
weather elements.
Commercial property insurance can
cover your business against flooding damage, burst pipes, and accidents.
However, they won’t cover natural disasters such as earthquakes. If your
business is in a more exposed area to such accidents, you must have additional
costs for that.
Protect
Yourself With These Types of Small Business Insurance Today!
Make sure you find the right small
business insurance to protect your commercial property and the workers. There
are several types of small business insurance for entrepreneurs that you can
take to protect you from any unforeseen risks.
Know the types of insurance that are
government required and those that are necessary depending on your business
needs.
If you need more information on
finding the right insurance for your business, stay on this website for more
insights.
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