Period. But the type you need can differ widely based on what your business does.
Do not make the mistake that many young small business owners make and presume that they’re protected simply because they are incorporated. You need small business insurance. You can still be sued. If you think risks to your company are identifiable and avoidable, then you truly don’t understand how business works!
Case in point: although my company is a software business, one of my employees unwittingly triggered an explosion at a laundromat, and I almost lost my company because of it.
Before you read any further, you should know I’m not an insurance specialist or even a generalist. I’m simply a battle-hardened entrepreneur that has bought insurance through time, experienced my fair share of promises, and experienced the fanny-saving powers of insurance firsthand.
In this article, I’m offering a couple of basic insurance strategies for small business owners. Even so, the insurance marketplace is in flux, and you need to consult a good, moral, and educated insurance broker. The broker will ask you questions regarding your business and help you find the right small business insurance for you.
Commercial General Liability (CGL) Insurance is intended to protect your business from claims caused by accidents, injuries, and negligence–those could include libel, slander, property damage, or physical harm. It may also cover the cost of your defense in a suit.
Product Liability Insurance may give you some protection against safety issues if you manufacture, distribute, or even sell a product through wholesale or retail. It could protect your business from financial loss resulting from a product defect that causes an injury.
Professional Liability Insurance, also called errors and omissions insurance (E&O), can give your company some protection if you commit any malpractice, mistakes, or are negligent in the shipping of your solutions to clients.
Commercial Property Insurance is intended to pay damages to business property from events such as fire, smoke, wind, hail, storms, vandalism, crime, civil disobedience, etc.. The phrase”business property” can mean a lot of things. It features not just your physical assets, which are usually considered deductible business expenses such as buildings, equipment, stock, tools, computers, etc., but might also include your company’s important documents and documents, and the financial expense of a business interruption. You can also check out Leland West Insurance
Workers’ Compensation Insurance is a necessity when you have workers. It covers the expenses involved if a worker experiences any type of job-related harm. Check with your insurance broker to find out whether you must purchase it by a state-run program (i.e., North Dakota, Ohio, Washington, and Wyoming), or if you are able to buy it from your broker.
Compensation Insurance is also a requirement if you have workers. This insurance plan allows workers to collect unemployment when they stop working for your industry. Every state has its own state unemployment insurance coverage which is often called SUI or SUTA, and your tax payments have been calculated throughout the judicial procedure.