Insurance Types Small Business Owners Should Know About
Being a small business owner can be simultaneously exhilarating and terrifying. As the boss, you must keep in mind what’s best for your business and its growth, as well as protecting your assets, your family, and your employees. Given the dizzying array of responsibilities you will feel at any given time, having the right types of insurance coverage is critical to staying safe, protected, and financially prudent.
Which insurance policies should you consider as a business owner?
General Liability Insurance
When you open a storefront or office space, you are suddenly opening yourself up to potential lawsuits should any customers be hurt and you are responsible for what happened. Every brick and mortar business should have a level of general liability insurance to ensure that if something unforeseeable happens, you’re prepared.
Business Owner’s Policy (BOP)
Rather than seek out individual insurance policies for every small risk, small business owners should consider a basic business owner’s policy (BOP). The standard BOPs on the market will help protect you and your business in the event of unexpected issues like property damage, business interruptions, crime, vehicle accidents, and more.
All businesses are required to carry Worker’s Compensation Insurance. This insurance will pay the medical bills and lost wages if an employee is hurt or gets sick on the job.
Professional Liability Insurance
When you’re offering your services and expertise to your clients, professional error may arise, resulting in issues with the client, your reputation, or even legal action. By purchasing professional liability insurance, also known as Errors and Omission Insurance, you’ll be protected if you fail to provide the quality of services expected on behalf of the client.
Key Employee Insurance
Small business owners may rely heavily on specific employees. These key employees, thanks to their experience, knowledge, skills, or customer relationships, are likely critical players in the success of the business. These are the employees who may be deemed ‘irreplaceable.’ Should these key employees become disabled or pass away, key employee insurance helps protect businesses from the expected impact to their bottom line.
Lastly, an umbrella insurance policy provides greater levels of liability protection than other individual insurance policies. For example, automobile or “slip and fall” liability policies may only cover a certain dollar level, but a significant event might require even greater coverage. In anticipation of such a risk, small business owners can purchase an umbrella policy to give broader and higher levels of protection than the underlying policies provide.
When you’re looking to make sure your business is protected, be sure to consult experts in the insurance world. Schechner Lifson can help guide you through these critical decisions and answer any questions or concerns you may have, even if you’re not a client. Get in touch with us today to learn more.