You have health, car, and home insurance because sometimes, stuff happens that you can’t control or predict. Similarly, when you run a business, sometimes the unexpected happens. Equipment is destroyed in flooding or you can’t meet contracted deadlines because the government shutdown takes down the databases you need to finish your work. For these reasons, all business from small one-person shops to multi-million dollar organizations need insurance.
There are many different types of business insurance available and what you need will depend on what type of business you run and will change over time. If your business has equipment, you’ll carry insurance to protect it from damage or loss. You may carry liability insurance to protect against legal claims that arise unexpectedly and you may be required to carry workers compensation insurance to cover your employees. If you have enough people working for you, you may also have a company health insurance policy.
Insurance protects you from the unexpected. You may think your business is too small to be worth suing, but you’d hate to discover you’re wrong. Small side businesses can even attract lawsuits. Insurance handles the problem, providing an extra level of protection for your personal assets in the event you are sued.
Anyone can sue anyone at any time over anything. While these lawsuits may be frivolous and groundless, even getting them dismissed is a cost and can be a huge source of stress for a small business owner. Having insurance gives you the peace of mind to know you won’t have to handle these unexpected costs out of pocket.
A good insurance agent can help you tailor an insurance policy to fit your needs. You’ll want to consider:
- Property & Casualty Insurance: This covers your physical location from fire, flood, theft, and other problems that are caused by and during the operation of the business.
- Commercial Auto Insurance: This is useful if your business owns and operates automobiles as part of its services and functions similarly to your personal car insurance policy.
- Liability Insurance & Product Liability Insurance, Errors & Omissions, and Professional Malpractice: This category of insurance covers you in the event that something your business does or makes gives rise to a lawsuit. Even service business that provide professional services should carry some form of liability insurance in the event that their work is incorrect.
- Business Interruption Insurance: This helps you make up for lost cash flow in the event of an unexpected interruption to your business such as a flood or fire.
A good business attorney such as the team at Virtus Law Firm can help you understand where your liability is for your specific business operations and what you want insurance policies to cover. Our team can also review your insurance policies and make sure you understand exactly what situations they do and don’t cover. Reach out today by calling us at today at 612.888.1000 or email us at firstname.lastname@example.org.