The Right Insurance for your Small Business

September 28, 2012      

Small businesses are especially vulnerable to risk, no matter what type of business you have.

Protect your company from a wide variety of legal and financial risks that might otherwise cause irreparable harm with  business insurance.

Every business may need industry specific insurance but there are two general types of insurance that you will definitely need: liability insurance and property insurance.

Liability Insurance
Whether you like it or not, you can’t stop accidents from happening. In the event of an accident, liability insurance will cover the cost of legal claims against your business. These claims are generally in regards to accident, injury, and negligence.

• General liability insurance covers bodily injury, property damage, defending lawsuits, settlements, or judgments. For example, if a customer fell in your store and sued you for negligence, your general liability insurance would cover the court costs and potential settlement.
• Product liability insurance specifically covers the products your company produces or distributes should those products cause injury. Therefore, the amount of product liability insurance you need depends upon the kind of products you deal in. A customer service business that does not sell a tangible product does not need product liability insurance; a chainsaw manufacturing company does.

Property Insurance
While your employees and the people who frequent your business need coverage, your property does as well. With property insurance, you can breathe easy knowing you’re covered regardless of whatever happens to your building and property.

• Commercial property insurance covers damage to company property, including its buildings and material assets, lost income, business interruption, and money, due to weather, fire, vandalism, and other uncontrollable events. All-risk policies cover a wide range of risks, with certain exceptions, faced by the average small business. Peril-specific policies cover damage from a specific type of damage for which the company is at a high risk of encountering, such as flooding or wildfires.
• Home-based businesses are generally not covered by homeowners’ insurance policies. Owners of home-based businesses can add riders to their homeowners’ policy to cover certain aspects of their business. They often must purchase additional liability insurance to cover risks outside the purview of homeowners’ insurance.

Small business insurance can help protect you and your company from a wide variety of risks, from personal injury to property damage. Insurance can be purchased through most major insurance companies. Compare the coverage provided by different companies to make sure that you are getting the best rate as well as protection against likely risks to your business.

For more information, contact TriState Business Insurance.

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