What Types of Insurance Does Your Small Business Need?

It’s never been easy running a small business. The risks you face as an entrepreneur start to affect you the day you register and get started. These risks need to be dealt with at the earliest, preferably before you hire your very first employee.

Thankfully, there is a clear and simple way to deal with risk and you’re most probably using it already – insurance. Here are the types of insurance you should seriously consider getting for your business.

Employers’ Liability Insurance

Basically, this type of insurance helps protect the employer if the employee is injured at work or has some serious health issues as a direct result of working for the company. Non-limited family businesses and government departments don’t need to get this insurance, but if you run a company that’s anything else, you must look into it.

Read more on business insurance

Public Liability Insurance

The sort of insurance works very similarly to employer’s liability, but is for members of the public instead of employees. It helps to protect you if someone who doesn’t work for the company is injured somehow because of your operations. Damages and legal costs can be covered under such an insurance scheme and it is crucial that you get the policy sorted if your business affects or is in direct contact with the public.

Related Article: Making the Most of Your Business Insurance

Commercial Auto Insurance

If your company owns and operates a car or if you simply want to protect the business from any vehicular accidents, car insurance for the business is a must. You may have to shop around to get cheap auto insurance, but considering the benefits, it is worth every penny. Just like personal car insurance, business car insurance comes in many variations and you may have to check to see which one is most appropriate.

Professional Liability Insurance

This sort of cover is needed if you offer personal advice to customers. If clients depend on you for in depth advice and professional guidance on a particular subject, you need professional liability insurance. This covers you in the unlikely event that you make a mistake. If you offer advice that wasn’t exactly correct and it leads a person to a loss, you may be faced with a claim for financial compensation. Basically, you will have to either pay out for a mistake you made or pay a lawyer to prove in court that the fault wasn’t yours.

Either ways, the impact on your private finances could be huge. You can protect yourself with this cover. This policy also covers legal expenses when you have to defend against a compensation claim.

Business Interruption Insurance

Days lost from running your business is money lost. You want to avoid keeping your business shut for many days at a stretch, but some catastrophe may make this impossible. Covering yourself and your enterprise with this insurance ensures you get compensated for lost time and revenue. This sort of insurance could be extremely important if your business is dependent on a physical location; for example, a coffee shop in a mall.

Property Insurance

Property insurance can help you insure your tools or buildings that you use for the business. This can also include equipment, if you happen to work with expensive and heavy tools. You may have to keep hold of the original receipts for the purchase of these tools, but if they are very important to your trade it’s worthwhile looking into this insurance.

Author: Cheapautoinsurance.net provides auto insurance quotes and information for comparison shopping, as well as a bank of resourceful articles.