Every small business owner should take a small business insurance, which falls under the general business liability insurance. It is very important that every business should buy a small business insurancepolicy to avoid huge losses of money and investment in the event of a disaster that can be covered by an insurance company.
This insurance provides coverage of a company’s assets and pays for costs incurred on obligations caused on the property or by the employees of the business. This could include for example, medical costs incurred in case of injuries that occurred on your business property and damage costs to business property either by you or an employee. It includes additional cover of the cost of your legal defense and any settlement or award should you be successfully sued. The legal coverage generally includes compensatory damages, nonmonetary losses suffered by the injured party as well as any punitive damages. In case you are a tenant at your business premises, a small business insurancepolicy could give you coverage in case of a covered loss for example, damage of property due to a fire. Other elements of your business that are covered include claims of false or misguiding advertisement that includes copyright infringement, slander and libel.
The general cost of annual premiums for this insuranceranges from $750-$2000. The price of your policy will depend on your coverage needs and your type of business. Buying a policy that protects your business is therefore a wise and smart decision for your company since it is relatively cheap to buy as compared to suffering personal loss that could amount to millions of dollars due to risk such as fire and legal fees in case of a legal battle. Businesses also have the option of buying small business insuranceas part of a Business Owner’s Policy. This is a policy that comes as a package of both liability and property insurance. When buying a Business Owner’s Policy one should check the liability coverage limit since it varies and could be considerably low in some policies. To protect your business against additional risks, you could buy additional cover through separate policies offered by your insurance provider.
Your small business insurancecover can be determined using different characteristics of your business for example, your location, type of business you are in and the perceived risk rate of your business. It is cheaper for low risk businesses to buy a Business Owner’s Policy because it combines general liability and property insurance coverage. Small business insurancehas a maximum amount to which they can reimburse costs incurred by loss or damage. In case of an excess in loss, it falls on the owner of the business to take responsibility. One should consult with an insurance agent before buying a policy.
Besides having small business insurance, most states need that your business employees are covered by the workers’ compensation insurance and disability insurance. There are additional policies that could cater for other business needs and types.