Insuring a Small Business
A Home Business Article Contributed by Fiona Mclaren
Insure Your Small Business
As a small business owner, you want to have the peace of mind and the security of knowing that your business is insured. One thing that every small business owner should be aware of is that they shouldn't ever rely just on their normal homeowner's policy. If you do, your small business could be in for a shock.
What are the Consequences of Not Properly Insuring Your Small Business?
If you don't properly insure your small business, the consequences could be catastrophic. For example, if your computer is stolen, you may never receive a penny in insurance pay outs. This could be because your normal home owner's policy excludes any business items. Which is what your computer is when you use it in connection with your small business.
If the postman falls and hurts himself on your property, and decides to sue, you may not have the insurance to cover it if you are not covered for injuries in connection with business deliveries.
Another issue you need to consider is that you could lose out on insurance claims if your house burns down (God forbid). If you haven't declared that you use your home for business purposes, this could stump your insurance policy straightaway.
How Does a Small Business Avoid These Pitfalls?
If you are a small business owner, you need to sit down with your insurance broker, and relay ALL the facts about your business, and the operations it works within. The more up front and honest you are, the better and more comprehensive your small business insurance will be.
Luckily, it is not overly expensive to add riders to your homeowner's policy. This will help to cover normal business risks. However, it is advisable for you to check whether you need additional policies for your other business activities.
Equipment and Furnishing Protection for the Small Business
Every small business owner must work out and estimate how much their furnishings and business equipment is worth, in case the worst should happen. You need to be able to protect yourself against disaster, theft, or fire.
Make sure that all specialized business software for your computer is taken into account.
Never forget that replacing lost items for your business can be very expensive. It is your responsibility to make sure that you account for everything that is relevant, and have it adequately insured.
Special Requirements
Some small business owners will need to get special kinds of insurance. For example, you may want to look into professional liability insurance, if the services you provide fall under this category.
Don't forget to look into your car insurance either. You need to make sure your insurance covers business errands.
If you make, sell, or provide products that have the potential to hurt someone, you may want to think about product liability insurance. Also, if you intend to hire some employees, it will be up to you to organize workers' compensation coverage.
As a small business owner, it is your responsibility to make sure that your insurance policies are in order.
