Should I Get Insurance For My Small Business?
Small businesses operate on a limited capital that often, cannot afford to be derailed by outside expenses such as lawsuits or claims filed against the business. Here’s what can happen if such expenses are incurred by a business that does not have insurance:
· ? ? ? ? Arrested growth, as there may not be enough revenue to subsequently reinvest in the business
· ? ? ? ? Bankruptcy, as the business may not be able to pay for the damages and keep operational
· ? ? ? ? Out-of-pocket spending by the business owner, if the business is not registered as an LLC
Thus, it’s easy to see that insurance for small business is essential to protect them in their day to day operations, especially because expenses can be incurred in many ways such as:
· ? ? ? ? Employee injuries or harm.
· ? ? ? ? Third-party injuries or harm.
· ? ? ? ? Copyright infringement.
· ? ? ? ? Property damage.
· ? ? ? ? Vehicle damage.
If you want to sustain your business’s growth potential, you should definitely look into insurance for small businesses.
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What types of insurance for small businesses do I need?
The types of insurance relate to the services performed by your business, but generally, the main types of insurance you will need are:
· ? ? ? ? Workman’s compensation insurance – for harm sustained by employees.
· ? ? ? ? Group health insurance – for healthcare expenses of your employees.
· ? ? ? ? Business income insurance – for hiatuses and breaks in the day-to-day operations of your business.
· ? ? ? ? Commercial auto insurance – for damages to vehicles operating under your business’s name.
· ? ? ? ? General liability insurance – for harm sustained by third parties.
These facets will ensure that, largely, your business will be protected from financial losses in the case of claims filed against it.
How can I purchase insurance for my small business?
Contacting and discussing your business with an insurance broker is the first step towards protecting your business. Often, all major types of insurance for small businesses are offered as a discount package called a Business Owner’s Policy – it usually contains all the aforementioned types of insurance, though you should confirm with your insurance broker which facets are covered.
Insurance for small businesses is the key to safe, sustained growth and success. In light of this, it should be one of the top priorities of a business owner while setting up their small business.