Obtaining Insurance for Your Small Business
A Home Business Article Contributed by Jenni Mckinney
The Insurance Your Small Business Needs
Starting a small business is a complex procedure with a multitude of variables involved. One of these variables is insurance, which should be activated prior to performing any services or providing any products from your small business. Before you meet with your insurance agent, find out what types of insurance coverage your competitors utilize to give you an idea of what you'll need.
General Liability Insurance for Your Small Business
The most basic type of coverage you'll need will undoubtedly be General Liability, no matter what type of industry you are in. This type of insurance protects your small business from being held liable, or sued, if someone is hurt or if property damage occurs where your company was even nominally involved.
In addition, most General Liability insurance policies come bundled with even more protection for your small business, including Products/Completed Operations, which covers your small business from any claims arising from bodily injury that was directly caused by a product or service you offered; Fire/Lightning/Explosion damage; legal defense costs; medical payments; and water damage liability protection.
General Liability insurance can start as low as a few hundred dollars a year, depending on your operations.
Professional Liability Insurance for Your Small Business
Also known as Errors and Omissions Insurance (E&O;), Professional Liability insurance protects your small business from being sued for providing erroneous information or for omitting important details. For example, a home inspector needs a professional liability insurance policy to protect his small business if he were sued when a home caught fire after his inspection, or if mold was found that he didn't identify.
In addition, Professional Liability can come bundled with other types of coverage as well, including Workers Compensation, which covers employees' medical costs for on-the-job injuries as well as any disability income or rehabilitation costs for employees; and Hired and Non-Owned Auto Insurance, which covers rental vehicle usage.
Professional Liability insurance is generally only used for a small business in the service industry, and can cost over a thousand dollars a year, depending on the type of service provided.
Business Auto Insurance for Your Small Business
Business Auto Insurance covers your small business for injuries to others or to others' vehicles in an accident. This type of insurance typically extends to Collision and Comprehensive coverage, which can even cover the cost of repairing damage for your own vehicles after an accident.
Your small business will benefit most when purchasing this type of insurance policy in a bundled that includes a few extras, including Uninsured/Underinsured Motorist coverage, which is designed to protect you from costs occurred in an accident involving an uninsured motorist, a hit-and-run event, or a motorist with less insurance coverage than you.
In addition, a Business Auto Insurance policy should cover glass repair as well as the cost associated with replacing any kind of permanent audio equipment, including speakers and CD players, in the event your vehicle is stolen. The cost of this type of coverage varies widely depending on the number of vehicles insured.
Finding the Insurance That's Right for Your Small Business
Depending on the operation of your small business, you may need additional types of insurance, but these three are typically the most common in the small business field. Armed with this list, you are now ready to meet with your insurance agent to determine which policies suit your small business the best.
