Small businesses are exposed to various risks. Many small businesses are in the form of sole proprietorship and partnership. This largely increases the cost the owners have to take when accidents happen. Therefore, before a small business is launched, its owner should minimize the risk by covering his/her enterprise with insurance, and he/she should consider the following insurance. With most startups, budgets are tight, and the risk of an accident can vary. Weigh the costs and benefits with a lawyer and insurance agent when making this decision.
Business Liability Insurance. It is an insurance that protects a business owner when he/she gets into a lawsuit or a third-party claim, and it also covers the legal costs. So, when your business is sued for personal injury or property damage, business liability insurance can protect your business and you from financial ruin. Business liability insurance includes mainly three forms: general liability insurance, professional liability insurance, and product liability insurance.
Commercial Property Insurance. It is an insurance that covers things related to the loss and damage of commercial property caused by events such as fire, natural disasters, and vandalism. If your business is in an unfriendly neighborhood or a place that is not far away from natural disasters, you might need to consider this type of insurance.
Business Disability Insurance. It is hard to imagine when you are running the majority of your business operations, and you have to stop working due to sudden injury or health issue. These unfortunate things could cause devastating effects on both your personal life and your business. At this hard time, business disable insurance can replace your income in the event of accident and health issue.
One should never expect that accidents could never happen to them. In fact, small businesses nowadays are exposed to more and more risks. Even a seemingly small accident can bring major change to your business. Fortunately, most of these risks are foreseeable and are covered by todays insurance. As a sophisticated entrepreneur, one should always think ahead to mitigate the risks, and some of these types of insurance may be an effective way to do so.