Ready to take your small business to new heights? As a small business owner, you’ll need every advantage you can find in today’s highly competitive, global business landscape.
Becoming the next startup like Uber or Airbnb that now are valued at $1 billion or more by venture capital firms worldwide remains an uphill climb. As such, small business owners may devote substantial time and resources to grow their companies, yet many of them will fall short of achieving their long-term business goals.
Attention to detail is what separates an average small business operator from an extraordinary one. With the right types of insurance in place, small business operators can protect their assets as they grow their companies.
Five Types of Must Have Types Insurance for Small Business
1. General Liability Insurance
General liability insurance offers broad protection for small businesses. It ensures they are covered against a variety of risks, including:
- Bodily injury
- Property damage
- Personal injury
The costs associated with general liability coverage often vary based on risk. Thus, if you work as a roofing contractor, you may be forced to pay more for general liability insurance than a food truck operator. Or, if you run your business out of a home office, your general liability insurance expenses will likely be minimal.
Regardless of your business type, general liability insurance can make a world of difference for small businesses across all industries. This insurance guarantees that even if your company makes a mistake along the way, you’ll be protected. You’ll be better equipped to maintain your business’ day-to-day operations and focus on what’s important—growing your company.
2. Property Insurance
Like general liability coverage, property insurance protects the future of your business by safeguarding your office equipment, inventory, and even others’ property.
Furthermore, property insurance protects your company in the event that a major disaster damages or destroys your workspace. This means that even though a fire, busted water pipe or major storm could devastate your business assets, you’ll be covered until your company can return to its regular operations.
3. Auto Insurance
If you operate a vehicle to deliver flowers, carry equipment to and from work sites or use a car or truck to perform various everyday work tasks, you’ll want to purchase business auto insurance.
In many cases, a small business operator may own a car and use a personal vehicle as part of his or her business operations. Your personal auto policy in some cases may not cover you if you suffer an accident in a car that you use primarily for business, therefore it is important to discuss with an agent to determine if you need a business auto policy to protect you against certain risks as you travel from place to place. If you purchase the right business auto insurance and set appropriate coverage limits, you’ll be protected whenever you use your vehicle for work.
4. Professional Liability Insurance
Don’t let a single professional error bring down your business. Instead, purchase professional liability coverage, and you’ll be able to protect your company against accidental errors and omissions.
Let’s face it—even a diligent small business owner will occasionally make a mistake. From an accountant who processes a client’s tax return incorrectly to a hair stylist who damages a bride-to-be’s hair before a wedding, accidents can happen at any time, and these problems can become major issues quickly if you’re not careful.
Fortunately, professional liability insurance will enable you to cover the costs associated with damage or other problems due to a professional mistake. This coverage may prove to be exceedingly valuable for startups, and ultimately, it may even help a small business operator become more comfortable performing day-to-day tasks. Professional liability insurance can allow small business owners to work more confidently and efficiently without having to worry about how a single professional error could potentially harm his or her business.
5. Workers’ Compensation Insurance
Workers’ compensation coverage is a requirement for businesses in every state except Texas. It provides a small business owner and his or her employees with protection in the event that an employee suffers a work-related injury or illness.
In addition, workers’ compensation coverage provides small business operators with a great opportunity to build goodwill with employees. If an employee suffers an injury or illness and is unable to return to work, he or she will receive sufficient compensation thanks to this coverage.
Small business owners are all too familiar with risk. With the aforementioned types of insurance at your disposal, you’ll be better equipped to manage business risks both now and in the future.