01/ 20/ 2005
There’s one thing that every small-business owner can’t live without: insurance. But what type of insurance do you need? There’s quite a selection, and it takes a few types to cover the basics; however, there are also those types that go above and beyond your everyday needs, and since you can never be too careful when it comes to your small business, these might be worth a look.
Some of the most common types of insurance that small-business owners buy include general liability insurance, product liability insurance, property insurance, tenant insurance, vehicle insurance and workers' compensation insurance. In addition, your business may need more specialized coverage.
Here are four types of policies that might benefit your business:
While ideally, each employee you have will be loyal, honest and contribute to the company’s growth, such is not always the case. A valid concern of every business owner is whether employees might embezzle money from the business.
To protect yourself against this type of loss, consider bonds that cover all workers. This type of coverage also protects you from employees you hire after the bonds are in effect. If an employee does steal from you, the bond company reimburses you for the loss.
Coverage for crimes
As varied as the types of small businesses can be, they all have one thing in common: they house valuable items within their walls.
For those crimes that are committed by an outside party, there is crime insurance.
If a crime occurs and the criminal isn't connected with your business, crime insurance covers the losses. Be sure your policy covers burglary and robbery as well as other thefts and the loss or disappearance of property.
It is wise to keep a list of your business property and update it whenever you purchase new equipment. Be sure to make two copies. One copy you can keep at the office and the other one should be kept at home in a fireproof box.
Business interruption insurance
A disaster is the last thing on your mind and the last thing that you would want to happen to your small business. As unthinkable as a disaster situation is, this is another area in which you can protect your business against loss.
Business interruption insurance is one form of insurance that many business owners overlook. This insurance can cover your lost income while your doors are closed. It also covers the expenses you incur while keeping your business going while your building is repaired or replaced. Additionally, it pays the cost of renting temporary space.
Industry-specific insurance
Check with the association you belong to as well as your insurance agent to find out about industry-specific insurance. These insurance policies usually have broader coverage for losses caused by industry-specific hazards.
Don't over insure
Every business owner needs insurance. However, it is just as important no to over-insure your business as it is not to underinsure it. Talk to your insurance agent. You may want to speak with other agents to get their recommendations on the type of insurance your business really needs. After analyzing all the suggestions, carefully determine what insurance you must have and what you can afford. Don’t buy a specialized policy before checking your current coverage; duplication is expensive.
