Insurance Policies Every Small Business Should Consider

Sole proprietorships often begin with no insurance. The owner will be trying to bootstrap their way to profitability, and only the bare bones insurance is taken out. But as a business grows, the liabilities of the business also grow.

The insurance policies that every small business should consider are:

General Liability Insurance

General liability insurance is the first, go-to insurance that small businesses will take out. The insurance is designed to cover claims against a business, and this is for:

• Bodily injury
• Property damage

If a customer walks through the door and falls, your business may be responsible. Over 8 million accidents occur due to slip and falls, and if the slip and fall were due to your own negligence, it will be a costly mistake on your part.

General liability covers the medical costs and legal costs that your business is responsible for paying.

Professional Liability Insurance

Professional liability insurance is a must for all service providers. Professionals make errors, and liability insurance will even cover errors made clerically. For example, perhaps you removed a patient’s wrong tooth due to an error. The insurance will cover this claim.

You need professional liability insurance if your business requires:

• A simple contract to be signed
• You give advice to clients
• You provide a professional service

Professional liability coverage offers worldwide coverage, helps defend against actual negligence or alleged negligence, and it will help cover all of your defense costs. Temporary staff or workers are also covered under insurance.

Workers’ Compensation

If you have employees, workers’ compensation insurance is a must-have, but each state has its own rules and regulations. You may need to have insurance by law, or it may be a safeguard that you pursue the moment you hire someone else.

Many workplace injuries that escalate into legal filings have caused permanent disability. While worker’s comp insurance will pay medical bills and for lost wages, they do not offer enough money to compensate for a permanent or permanent partial disability,

explains David Boehrer Law Firm.

Workers’ compensation will cover the costs of an employee’s:

• Medical bills
• Wages
• Death

If a worker dies from an illness or injury related to the work that they perform, workers’ compensation will cover wrongful death payouts, too.

A few other insurance options that you may want to consider are:

Auto insurance.

If you drive your vehicle for business purposes, you’ll need commercial auto insurance. The insurance is deductible, too.

Umbrella insurance.

Commercial umbrella insurance will cover the costs that liability insurance does not. If there is an excess liability, umbrella insurance will act as a financial safety net.

You may also seek out a small business owner policy, or a package of policies all from one provider. The package allows you to save more money and offers the utmost in insurance coverage, too. It’s important to ask your insurance provider if there are any options to bundle insurance policies or if any discounts are offered if you take out multiple policies from the same insurance provider.