Any business is exposed to a variety of risks. A smart business one will take the necessary acts to mitigate the risk and one valuable risk manager is insurance.
In many cases, there is no requirement your business needs insurance unless you have a company automobile, employees or it's a loan condition. Yet, this is no reason not to get business insurance. No business is immune to natural or man-made disasters and potential liabilities.
Business Property Insurance: Business property insurance is a must to protect your company's assets. Business property insurance is a wise investment to limit your liability and can cover a variety of losses, including damage from fires, electrical surges, even embezzlement by an employee.
Business Disability Insurance: What would happen to your business if you were paralyzed for one year or had an eye injury for 6 months? To the unprepared small business owner, an illness or accident resulting in disability can be devastating to your life and business. Disability insurance will replace your income in the event of an accident or illness. Before you express it could never happen to you, consider the hard facts.
According to the Disability Management Sourcebook, severe disabilities have increased 400 percent over the past 25 years from the age of 17 to 44. Before the age 65, one in seven people will become disabled for five years or more.
Business Liability Insurance: Over 78% of all U.S. businesses are structured as a partnership or sole proprietorship, according to Bizstats.com. For the majority of small business owners, this form of ownership puts your business and personal liabilities at risk. Owning business liability insurance protects both your business and personal life from financial ruin.
A common misconception of a limited liability company (LLC) or an incorporated company is a business owner is protected from personal liability and liability insurance is not necessary.
Errors and Omissions Insurance: We live in an increasingly litigious society. For small businesses in particular, the chances of getting sued for professional liability are greater than ever. However, most small businesses - with the notable exception of health care and real estate - are not aware of how to construct an insurance portfolio that will mitigate the risks of such litigation.
Protecting your small business from risks is the foundation of success. Take the necessary time to investigate your business insurance needs with an insurance representative, your industry association, and peers. It could be the most important decision to your company’s survival.
