Owning a small business requires a lot of time and dedication. It also means paying close attention to your business and commercial insurance brokers. A good place to begin is with these four types of insurance coverage. As the business grows and you begin to employ more people, you’ll need additional forms of coverage.
General Liability Coverage
Sometimes called business liability insurance, a general liability policy provides protection in the event someone is injured or there’s damage to property due to the actions of yourself, your employees, or the products that you offer.
This type of policy is usually broken down into three segments. General liability provides protection from claims of negligence, injuries, and accidents. Product liability offers protection in the event of injuries or losses caused by product defects. Professional liability covers financial losses due to errors or negligence on the part of you or your staff.
Life Insurance
Life insurance can benefit the business in two ways. In your case, the funds from the policy could be used to keep the business going in the event that you passed away suddenly. By leaving instructions for the money to be handed over to the business proper, it’s possible to settle debts owed by the business, place more money in a contingency account, or use the proceeds to cover general operational expenses while the business regroups.
You can also secure life insurance on officers and other key employees. In the event that one of them should pass away suddenly, the funds from the policy will provide the resources to locate a professional who can fill in temporarily while you search for a permanent replacement. In this way, the operation itself can continue even as you and your other employees mourn the loss.
Property Insurance
Property insurance covers events that could happen on the property where your business operates as well as any other real estate the company owns. You’re covered in the event there’s damage from an act of nature. Damage from vandalism, loss of property due to theft, or damage to raw materials or finished goods.
The goal is to make it easier to replace anything that’s needed to keep the business operational. Depending on the provisions found in the policy, it might cover the rental of a temporary business space if it’s not possible to work at your site until repairs or replacements arrive.
Commercial Auto Insurance
This type of auto insurance will cover any of the vehicles owned and operated by the company. You’ll find all of the typical benefits found in a personal auto insurance policy. That includes coverage for collision, liability, personal injury, and coverage that protects you in the event of an accident involving an uninsured motorist.
What’s different is that commercial auto insurance will cover you in the event an employee uses a company vehicle to get to and from work. The policy terms will also cover running work-related errands, or transporting products, equipment, or supplies that have to do with the business operation.
How are you set in terms of insurance coverage for your business? Are you sure that everything is in place? Before answering that question, pay a visit to guthrieinsurance.com and take a look at the options available for small and owner-managed business operations. What you see could motivate you to consider investing in additional insurance coverage.