At present, there are approximately 30.7 million small businesses in the USA, according to the U.S. Small Business Administration. If you want to succeed as a business owner, you need to protect your small business at all costs. This entails being able to assess the risks you face and then take out the relevant insurance to cover you against it. While extensive insurance coverage may seem unnecessary for a small business, a single disaster can destroy it before it even has time to grow. Thankfully, there is a range of insurance types that a small business can utilize to protect them against a multitude of risks.
General liability insurance protects you against various losses
Despite your best efforts, you can’t always prevent unfortunate incidents from occurring. These incidents can result in lawsuits that can completely devastate a small business, even if they are found to be not at fault. A client could slip and fall at your business premises, or a defective product could hurt a customer. Up to 53% of small businesses face at least one lawsuit according to the Small Business Administration. For this reason, general liability insurance is, without a doubt, one of the most important forms of insurance a small business can have. It protects the business from a range of financial losses arising from property damage, physical injury, and lawsuit settlements or judgments.
Make workers’ compensation insurance a priority
In most areas, business owners are required by law to take out workers’ compensation insurance. This should be done as soon as the first employee has been hired. According to Cerity Insurance, workers’ compensation insurance may be one of the most important investments a business owner will make. Workers’ compensation insurance can help a small business with many things, including supplemental wages for an employee, medical expenses incurred by the injured worker, and legal fees. Even when employees aren’t performing high-risk work, a simple slip-and-fall injury can result in a hefty claim.
Don’t underestimate the value of property insurance
Property insurance is an absolute must for small businesses, regardless of whether you own the property you are conducting business from or lease it. Your property insurance will cover everything from your equipment and furniture to stock and signage in the event of a storm, fire, theft or vandalism. If you live in an area where natural disasters such as hurricanes, earthquakes or tornados frequently occur, you may, however, have to take out additional coverage. In addition to your standard property insurance, it may also be worth your while to consider taking out loss of earnings/business interruption insurance to protect your income if you are unable to operate due to the extent of the damage incurred.
Small businesses come face-to-face with a plethora of risks on a daily basis. Luckily, there are many types of insurance at their disposal that will protect them against any unforeseen circumstances that may arise.