As a general rule, you should insure yourself against things you couldn't afford on your own. This coverage protects against financial losses caused by bodily injury, property damage, medical expenses, defamation, slander, defense in lawsuits and bonds or judgments to reach a settlement. There are about 30.7 million small businesses in the United States. If you're the owner of one of these small businesses, you already know that a lot of work goes into operating a business.
As a small business owner, your employees should be one of the most important priorities. As a business owner, you have a great responsibility to your customers, employees, properties, and stakeholders. That's a lot of weight on a person's shoulders. The primary purpose of business insurance is to financially protect your business when unexpected events occur. As much as you can plan and prepare for the future, natural disasters, robberies and even a pandemic can occur, leaving you in a difficult situation.
Business income insurance helps cover lost income that results from property damage. It can be used for rent, utilities or payroll. Insurance is very important because it serves as a safety net for companies in case things go wrong. It can also help make the company more stable. If someone in your company drives for business, then commercial auto insurance is a must in your policy.
Insurance is important for a company, as it serves to protect financially when something happens. This insurance is especially useful if you offer customer service, as claims for late, incomplete, or inadequate work can lead to costly lawsuits. The failure to take out these types of insurance not only exposes small businesses to the risks they intend to cover, but also to government actions for breaking the law. In recent months, due to the pandemic, insurance against business interruption has appeared much more frequently in the news.
It's really interesting to know that having insurance not only protects the company, but it can also attract and retain qualified employees. It's easy to assume that something may be covered, but unless you check and read that it's covered in your insurance policy, don't make any assumptions. In the above slip and fall scenario, general liability insurance could cover attorneys' fees and settlements. You can also purchase policies called “insurance for key persons” or “insurance for key persons” to cover the disability or death of a valued employee.
A general liability or business owner's policy is good for supplemental coverage, but depending on the type of business you own, other insurance policies might better protect your business. Unexpected events can cause great financial difficulties and, ultimately, cause companies to file for bankruptcy. Kear also recommends getting business interruption insurance to help keep your business afloat in the event of natural disasters, data loss, or theft. This is a very important type of insurance for any company, but especially for small businesses that do not have the necessary capital to completely replace things in case they are suddenly destroyed. Only you know the extent of the risks your company is facing, and it's important to analyze each of them to determine the specific situation of your company.
In general, many business owners start with a business owners policy (BOP) that includes general liability coverage, commercial property coverage, and business interruption insurance.