Learn About Small Business Insurance
Running a small business is a big responsibility, and also involves many risks – risks that you may not have been aware of when you set out to run your own business. At the same time, small business owners don’t need the same type of insurance coverage as large businesses and major corporations. Instead, small business owners need to find the right combination of insurance products to suit the unique needs of their business.
What Does Small Business Insurance Cover?
Small business insurance is a broad insurance category that can cover a number of areas including:
- Liability protection
- Business equipment coverage
- Property insurance
- Work vehicle insurance
- Business interruption insurance
- Group health benefits
- Business loan insurance
- Key person insurance
- Errors and omissions insurance
- Directors and officers (D&O) insurance
Do I Need Small Business Insurance?
The success of any small business is based on the strength of its assets. If any of your business assets are compromised – for example, if your business equipment is stolen, or if you become injured and are unable to work – your business could suffer irrecoverable loss. The right small business policy will ensure that your business stays up and running in case any of these unfortunate events occur.
If you want to make sure your business is properly protected, it’s important to be prepared for every scenario – even the ones that may be difficult to anticipate. A small business insurance broker can help you identify the risks associated with running your particular small business and help you find the right insurance coverage to protect against those risks.
Tips from First Foundation
Many people assume that when they incorporate their business as an LLC or other type of corporation, they will be protected from personal liability lawsuits. The truth is that while incorporation does separate your personal finances from your business finances, it doesn’t protect you against personal liability in all situations. For example, you could still be held personally liable if you sign a personal guarantee, or are found to have acted in an irresponsible manner. With small business insurance, on the other hand, your personal liability is protected all situations.
Incorporation also requires you to pay additional taxes and follow government regulations that unincorporated businesses are exempt from. Considering the expense and time involved in filing incorporation papers, purchasing the liability insurance for small business can be a more affordable way to protect your business, and can provide a much wider range of coverage.
Want to learn more about choosing the right small business insurance policy for your company? Read our blog post on 5 Ways to Get Small Business Insurance Just Right.
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