It is a fact that all types of businesses require, at a minimum, basic liability insurance. It is always advisable to protect your business against as much as possible. All industries are vulnerable to lawsuits for one reason or another these days. Even if you do most of your work from home, there are still some risks you need to be aware of, such as copyright infringement. Fortunately, there are custom small business insurance policies available, so you can shop for quotes tailored to your business type and business size.
You should take the time to learn about the four main types of general liability coverage, business property, business auto, and workers’ compensation. If you don’t make deliveries or use your car for anything related to your business, you probably won’t need that coverage on your policy. If you don’t have employees, then you won’t need workers’ compensation.
Even if you have some employees, you may or may not be required to have workers’ compensation, depending on the laws in your state and the amount of risk involved with the employees. There is professional liability insurance for people such as lawyers, accountants, consultants, real estate agents, etc. General liability and professional liability are not the same thing.
There are some risks that are excluded in small business business insurance, even though they may involve large losses. For example, floods and tornadoes require “specialized policies.” This is because insurance companies don’t like having to pay out such a large amount of money to all the damaged businesses within a small geographic area.
Small Business Business Insurance Coverage
Here are some things that small business insurance will, in general, protect your business from:
• If someone is injured in any way while on physical property associated with your business
• If a client has any property damaged by you or your employees
• If your products cause harm to someone or their property
• If you use a customer’s photo in your advertising and they try to sue you for copyright
• If your company is named in a lawsuit for medical expenses and property damage
What about your OWN injuries? What would your business be if something happened to you? These are also things to consider when adding specialized coverage to your policy.
Simply use the Internet to find the right business insurance for your small business, starting with Hiscox Business Insurance. Review your insurance every year to make sure it still aligns with your needs.
