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Business Insurance for the Small Business
by Gannon Pierpont
http://www.fproinsurance.com
If you own a small business, the Small Business
Administration has some advice for you regarding business
insurance. One of the most important investments you can
make when planning your budget is adequate insurance. If
you're just starting out and haven't yet planned for your
insurance needs, the SBA recommends that you carry the
following kinds of insurance the see you through bumps in
the business road.
Based on information gathered from the SBA web site, your
business should carry, at the very least, insurance against
property damage, liability, personal injury and business
losses due to unexpected catastrophes. In addition, your
state may require certain health and injury coverage options
if you employ others to work for you.
Property Insurance Property insurance will protect your
physical property, including equipment and your physical
plant. It also will pay any damages and medical expenses if
one of your customers is injured while on your property.
Also commonly referred to as liability insurance, the rate
you pay will be determined by the amount of risk that's
associated with your location and type of business.
Automobile Insurance If your business owns one or more
vehicles, you'll need insurance coverage for them. In
addition, if you're a sole owner, or small business owner
and you use your car for business purposes, check with your
insurance agent about getting a business rider on your
personal auto insurance. In many cases, your personal auto
insurance won't cover you in an accident that happens while
you're driving your car for business purposes.
Specialty Insurance Depending on your business, you may need
special coverage for equipment or activities that are a part
of your business. In fact, many business insurance plans
will not cover computer equipment, and especially not data
on your computers in case of damage. It is possible to get
insurance that will even cover the cost of attempting to
restore data on a failed hard drive.
Business Income Insurance While your property insurance will
cover the cost of damages to your property and equipment in
the event of a fire or other unexpected misfortune, it won't
cover the loss of income due to your being closed during
repairs. Speak to your insurance agent about business income
insurance that will reimburse you for estimated loss of
income due to forced closing in case of unexpected events.
Your business insurance may be considerably cheaper if you
combine it all under one umbrella policy. Most insurance
companies offer comprehensive Business Owners' Policies
which include all the above coverage. Consult your insurance
agent to help you tailor a policy that takes all of the
special needs of your business into account.
Besides insurance that protects your company and its assets
in case of damage, most states also require that you carry
workers' compensation coverage if you employ others on your
premises, or to carry out tasks for your business as an
employee. Again, an insurance agent can help you decide
whether you need to carry workers' compensation for your
employees, but in general, unless those that work for you
are specifically employed as independent contractors or
consultants, they are considered your employees and you are
responsible for providing coverage for them.
You should also check your state's laws regarding health
insurance, not only for your workers but for yourself. Each
state has different laws regulating what insurance must be
provided for what size business, but in some states, it
works to your benefit if you are a self employed owner of a
business with one employee - yourself. In Maine and several
other states, certain insurance plans must be offered to you
at group rates even if you are the ONLY employee of your
business.
There are some businesses that have unique needs related to
their business. If you own a restaurant, a lodging house, a
retail store, or offer professional services in accounting,
law or other sensitive areas, you should consult an
insurance agent with expertise underwriting your kind of
business.
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