5 Types Of Insurance Every Small Business Needs.
Insurance is a key element of financial planning for any business, regardless of its size or type.
Whether you own and operate a local hardware store or a nationwide printing company, insurance covers you when things go wrong.
It protects your personal assets in case someone sues you and ensures that your employees remain protected in case they are injured at work.
It also provides peace of mind that your income will be there if your business ever faces some kind of disaster—whether it’s because of a fire or an employee’s embezzlement scheme.
To ensure that your business is properly covered, here are five types of insurance every small business needs:
1) Business Liability Insurance – This is your most basic form of insurance. In case someone gets hurt on your property or at one of your events, business liability insurance will protect you from a lawsuit.
It also protects you if a customer sues you because their food order was wrong or they broke an expensive vase in your store.
Essentially, it protects you when someone else makes a mistake that leads to a legal liability for which you are held responsible.
However, business liability and its coverage differ from insurer to insurer; be sure to investigate each company thoroughly before making a decision.
2) Data Breach Insurance – With growing concerns of privacy and hacking, data breach insurance is quickly becoming a must-have in today’s digital world.
This type of insurance covers you if your customer database is leaked or hacked and your customer’s personal information is exposed.
It also protects you if someone breaches company computer systems and steals intellectual property or trade secrets.
This type of coverage comes with two important subcategories; cyber liability, which deals with liability from hacks and damage caused by malware, and business interruption, which insures against any revenue loss incurred as a result of system outages related to viruses or hackers.
3) Health Insurance – Here’s another insurance every small business needs. Your employees are your most valuable assets, so keeping them healthy and happy should be your top priority.
A well-rounded health insurance plan should cover general checkups, prescriptions, and even dental work for your full-time staff members.
The more comprehensive you can make your coverage, the happier your workers, will be (and more productive).
As an added bonus, when your employees are in optimal health, their chances of getting hurt on company property or at company events decreases.
Many people think that small businesses don’t need as much health insurance as large corporations; however, just because you don’t employ hundreds of people doesn’t mean that a catastrophic event won’t cripple your business.
So, keep your workers covered!
4) Property Coverage – Even if you own your building outright, it might still require some form of property insurance.
After all, owning real estate is always a risky business—particularly if it’s not being used for income-generating purposes.
That said, in order to maintain full coverage on a building that’s only occasionally occupied, you’ll need to purchase what’s called non-owner occupied or partially owner-occupied insurance.
Basically, these types of policies cover someone who doesn’t actually own a specific piece of property; they insure them just in case something goes wrong with their buildings or land while they aren’t using them.
5) Commercial Vehicle Insurance – If you’re a small business owner who does their own delivery services, commercial vehicle insurance is another type of coverage you should consider.
This protects you in case your vehicle has an accident or is stolen. It also protects against incidents like property damage and bodily injury.
When it comes to insuring any type of vehicle (including vans and motorcycles), there are two main options to choose from; collision coverage and liability protection.
Collision covers costs if you hit someone else’s car, while liability protection deals with any legal problems that arise as a result of an incident involving a company-owned automobile.
Finally, be sure to contact your agent about any other special types of coverage for which you might qualify as well!
Conclusion – The business world can get pretty tricky; that’s why having a well-rounded knowledge of important insurance types is crucial.
And, since every business owner’s coverage needs are different, it’s wise to do some research on your own to learn about all options available to you.
It may seem daunting now, but with professional assistance from experienced agents and brokers, understanding insurance could end up being one of your most pleasant surprises as an entrepreneur!
If you liked this blog post: 5 Types of Insurance Every Small Business Needs, then make sure to check out our last one: How To Get Your Self-Assessment Tax Return Done On Time.
If you want to discover how we can help your business, Quest Birmingham Accountants offers the following services: Tax Services, Self-Assessment, VAT, Payroll, New Business, R&D Tax Credits, Annual and Management Accounts, Tax Returns, Self-Employed Accounts, Business Planning, Business Tax, Accounts Services, Bookkeeping, Pensions, and UK Tax Deadlines.