Small Business Insurance Options
Small Business Insurance, also called Small Business Exposure Insurance, is the backbone of any good small business. Without it, a company would be liable for all costs it incurs due to a lawsuit. It may be costly and restrictive, but the cost of not having Small Business Insurance is much greater than the cost of getting it. A small business’s exposure to risk is limited to its assets. The more liquid a company’s assets are (and the less they have to borrow) the more accurately this calculation can be made. In other words, the lower your premiums are the higher your actual cash value will be.
There are four different types of Small Business Insurance policies available to the small business owner. General liability insurance will cover a business for damages or injuries it causes to third parties. Professional liability insurance will cover a business for professional errors and omissions or even negligence. Errors and omissions coverage and loss prevention and control coverage will protect a business owner from claims based on inaccurate or incorrect advice given to them by a professional. Finally, property protection insurance will protect a business owner from the possibility of losing valuable property through a fire, flood or similar natural event. Visit here for more information about Small Business Insurance Quotes.
Many professional liability policies will help cover the cost of purchasing professional liability insurance. This type of coverage will help pay for property damage or claims resulting from negligence, errors and omissions, as well as a business owner’s out-of-pocket expenses for legal representation and other related activities. Property protection can be particularly important if the business is a maker of products that fall into the category of cosmetics, food, medical devices, pharmaceuticals, tobacco, or household cleaning supplies. Some of these categories are particularly sensitive because many of the products involve direct contact with the skin, which can lead to serious skin irritations and reactions, and sometimes serious health complications. Personal injury claims can also help pay for attorney fees, lost wages, medical expenses, or time off from work due to injuries suffered at work.
Product liability insurance policies will cover liabilities for defects or errors in manufacture. These claims will vary depending on the product in question, but can include anything from a baby’s toy to a new car. A manufacturer that does not follow required guidelines when manufacturing a product can be held liable for damages or injuries caused by the product. Some states require small business insurance policies to be purchased at the same time as motor vehicle insurance to ensure that the right coverage is purchased for the right amounts.
Another option is general liability insurance, which will cover a business for incidents other than slip and falls, explosions, or violence caused by a customer or client. In addition, general liability policies can be useful in protecting customers who are injured while using products in your store or being served products by your employees. Some of these types of policies will also cover advertising claims, such as those related to any advertising that is posted on your business premises. It is important to remember that these types of policies do not cover your business against errors or omissions, so it may not be helpful if you have experienced a lawsuit after an accident. However, if no injuries have occurred and there has been no damage to any of your property, these types of policies can help protect your assets.
As a business owner, you may feel overwhelmed with all of the different types of insurance policies you need to purchase. Before you buy any type of policy, make sure you understand what is included and what is not. A thorough study of your major policies’ definitions and how they can affect your business is best done before you buy a policy. This will help you understand which of the major types of small business insurance are right for you.