It is hard enough to start your own small business today but imagine if something dreadful happened and you weren’t covered for it? Imagine if you were robbed, or your building caught fire. These things, sadly, happen on a daily basis across the country. This is why if you have your own small business you need a Small Business Insurance policy.
There are three basic types of small business insurance which are needed to protect your small business or company. These are Property Insurance, Liability Insurance and Worker’s Compensation. These three types of insurance cover your business for all of the most common problems.
Property Insurance covers your building or land in which your business is set on. This form of insurance is for anything from fire, theft or destruction of the building through an accident.
The second, Liability Insurance is there to cover you in case something happens to a customer or someone who is visiting your business. If you have a small store that caters to the public and someone trips in your parking lot then you are covered for any lawsuits which may arise from the incident.
The third and final form of insurance, Worker’s Compensation, is required by law. This form of insurance is used whenever you have employees or hire contractors. This insurance type covers accidents that can happen in the workplace. Even small businesses are not immune to the perils of working accidents.
If you are a small business you can obtain what is called a Business Owners Policy or BOP which combines the first two insurance types. This is easier on small businesses and enables an owner to make one solid monthly payment on these insurance types. Of course the downside is that the Property Insurance never covers flooding or earthquakes, these two perils are considered acts of God and thus are not covered by any standard insurance but their own.