Owning one’s own business comes with a lot of responsibility-both in the daily work of providing the business’ product or service and behind the scenes as well. The owner must take care of financial aspects of the business, including bookkeeping and taxes, streamline the production or service process, and take care of employees. Insurance is a good tool for a busy business owner, and is something that should not be ignored. The right types of insurance and reliable insurance are essential for any business, no matter what type of business it is. However, there are three types of insurance that are especially useful and important for a busy business owner to purchase and maintain general liability insurance, error and omissions insurance, and commercial property insurance.
General liability insurance is probably the most common type of business insurance. This insurance covers and protects against legal actions relating to injury, property damage, libel and more. The insurance protects the business owner from having to pay out of pocket for bills related to these topics or court fees that result. Even if the business is responsible for the accident or other event, the insurance can usually be used. Since it is very easy to take anyone to court these days, even over small incidents, this insurance is a good one to have. The amount of liability coverage the business owner chooses to buy will depend on a number of factors. The size of the business is a good place to start. One should calculate and consider their perceived risk-for example, a heavy machinery outfit is more likely to have accident or injury problems than a business that does hand sewing. Another thing to consider is what state the business is located in. Some states have a history of court cases involving businesses, and may tend to award money to either the plaintiff or defendant more frequently. It is a good idea to check these statistics.
Error and omissions insurance protects a business from legal or monetary claims stemming from a mistake that the business has made. Such a mistake could include a production error, billing error, or employee error. This is good insurance to have because mistakes can happen to anyone. No one business is less likely to suffer from human error than the next one. This insurance is also referred to as E&O or professional liability insurance. This insurance may not be available from all agents, but rather one specializing in business insurance.
Commercial property insurance is essential to protect the land and buildings that a company operates in. Natural disasters can happen anywhere and damage thousands of dollars worth of product, equipment, and the building itself.
To have a good business, one must have the right insurance. These three forms are a great choice for even small business owners.
