Your business is your livelihood. It’s how you support yourself and your family and it’s a huge investment. Some business owners are tempted to skip insuring their business because it’s just a small one. No matter the size of your business, it’s important to protect that investment with insurance coverage and here we’ll share why.
There are a lot of different types of insurance policies out there, and it can be tough to figure out which ones you need. But, there are some basics that every business should have in place.
First, you’ll want to make sure you have property insurance. This will protect your building, equipment, and inventory in the event of a fire, theft, or other damage. Even if your office is on the petite side the cost of replacing everything in it would be sizable. You’ll be so relieved to be able to replace everything in the event of a loss.
One of the most critical coverages you’ll need is liability insurance. This will help cover any legal fees and damages if your business is sued. Even if you’re very careful, accidents can happen. If someone is injured on your property or by one of your products, you could be held liable. This protection also extends to damages caused by your employees. Lawsuits can arise from scenarios and incidents we would never fathom having issues over, which is why this coverage is so imperative to have on your side. When designing your policy, be sure to go over your assets with your business insurance broker so that they can tailor coverage limits based on your actual needs.
If you provide a service to customers, it’s important to have errors and omissions insurance. This will help cover any legal fees or damages if you’re accused of not performing your services correctly. For example, say you’re an accountant and you make a mistake on a client’s taxes that causes them to owe the government money. They could sue you for the mistakes, and this type of insurance would help cover the costs. This coverage is also important for businesses that give advice to clients. If your advice leads to them losing money, they could potentially sue you for damages. This coverage is critical to any business where one small mistake can cause great losses.
No business is prepared to deal with an interruption in operations. But, if something happens that forces your business to close its doors, it’s important to have a plan in place. Business interruption insurance can help cover your lost income and expenses if you’re forced to shut down due to a covered event. Even a small business that is closed for a week due to a fire could lose a lot of money.
These are just a few of the reasons why your business needs insurance coverage no matter what size it is. It’s prudent as a business owner to provide these important coverages not only to your business but as an extension of protection to those you serve.