InsuranceThought — Blogs About Insurance

Most of us realize that running a small business comes with its share of risks often undermining the rewards of such an endeavor. Whether you’ve considered it or not, having your small business insured is imperative to its survival; should the unthinkable become a realization, it could easily be the downfall of your company. In many cases, it can be the downfall of you personally as well if you are not protected with the insurance you need to cover whatever disaster is at hand.

As you work your way to success, be sure you familiarize yourself with several types of insurance that are available that can help you protect your investment.

Worker’s Compensation

This is a type of liability insurance that will cover the costs associated with an injury of an employee hurt on the job. Worker’s Compensation Liability is essential if you have employees who work in a potentially risky environment or situations that can easily result in injuries. Medical expenses of even one injured employee could potentially take all your assets and any investment you’ve made into your company. Some states do require this type of liability insurance, so be sure you’re familiar with your state laws and follow the guidelines set forth for your protection.

Unemployment Insurance

Any business that has employees is required by every state in the U.S. to have unemployment insurance. In each state, how the benefits are paid, the amounts and limits differ slightly; be sure you research to find out the details of unemployment insurance in your particular state.

Product Liability

This insurance is crucial if you run a business that manufactures and distributes any products. Product liability will protect you against any costs that result from one of your products causing physical harm to a purchaser. Evaluate the risks involved with any products you produce or sell when looking into purchasing this type of insurance.

Errors and Omissions

E and O insurance is usually a necessity to businesses that provide a service to its customers. You will be provided coverage in a case of error, negligence, or malpractice, protecting your business’s assets. Some states require this insurance for certain professions; be sure you look into the requirements of your own state if your business offers services.

In addition to these basic types, there are a number of other small business insurances offered that can help protect you from profit and asset loss in the event of a tragic situation. Talk to a local agent about what insurance is the best option for your small business.

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