It is very important for small business owners to carefully consider and evaluate their business insurance needs as they may have more personal financial exposure in case of a loss. If business owners don’t feel they have the ability to effectively assess business risk and coverage needs, they should work with a reputable, experienced, licensed insurance broker.
You can obtain a list of licensed agents in your state through your state insurance department or the National Association of Insurance Commissioners.
Business insurance can help pay for property damage costs, lawsuits, lost business income, and other losses covered. To help protect against the specific risks that are unique to their situation, businesses often purchase multiple coverages and combine several in a single policy. The Business Owner Policy, for example, combines the property, general liability, and income coverage of a business into one convenient policy.
Insurance helps protect against the cost of personal injury or property damage claims against your business. For example, a customer could file a claim against your business if he or she is injured in your store. General liability can help protect you against potential claims and defense costs. It also helps protect your business against error charges in your ads.
Each type of business insurance is designed to cover a different set of risks that you are exposed to in the course of running your business.
Public liability insurance can cover your business if members of the public file a claim against you for injury or damage. Your insurance may cover the costs of legal fees and compensation payments, up to the limit of your policy.
Professional indemnity insurance can cover compensation claims made against you by a client because they believe you have given poor advice or made a mistake in your work. This could include things like mishandling client data.
Employer liability insurance may cover compensation claims filed by employees for injury, illness, or damage they suffer as a result of their employment.
You can also choose to cover things like your business building, content, equipment, tools, and stock if damaged or destroyed.
