What Types of Insurance do You Need for Small Business?
Just as you insure your health, car, and other valuables, you should get an insurance policy for your business as well. This serves as a protective measure against the unexpected because the business world is filled with uncertainties and as an entrepreneur, you can’t afford to lose all that you have worked hard to acquire. To help you out with getting insurance, we will be sharing different types of small business insurance that you can use to ensure your business
Why Is It So Important To Purchase A Small Business Insurance?
By now, you should know and understand the fact that running a business is a risk. According to a recent study, it was discovered that about one-third of small business fails after two years of operation in the United States. This is not to scare you, but to show you exactly why getting small business insurance is so important for the survival of your business.
However, you need to understand that getting insurance doesn’t take away the market risk. You only get to insure your business properties and your employees.
Types Of Small Business Insurance
Purchasing the right kind of insurance that best suits your business might be quite overwhelming because of the multiple-choice out there for you to choose from. And with that, the odds are against you that you will make the right choice. To prevent that from happening, we have prepared a list of 5 different types of insurance for your small business.
1. Workers Compensation Insurance
This type of insurance covers workers’ compensation and it is usually used for job types that are hazardous to workers. Also, it is an insurance policy often required by law, so you can’t afford to run your business without having it in place.
Workers’ compensation insurance covers workers’ injuries at the workplace and anything related to that. In most cases, worker’s comp insurance policy for small businesses is usually cheap and the service cost ranges between $1 to $3 per $100 of your employee salary in a month.
2. Unemployment Insurance
This is another government required small business insurance that you can’t afford to neglect. A small business unemployment insurance policy covers your employees against job termination. Being a government required insurance, you will have to get this directly from an insurance carrier.
3. Disability Insurance
This is also a government-required insurance policy that covers your employees with disabilities at a certain point in time. The only difference that distinguishes this type of insurance is that the acquired disability doesn’t have to be work really. Here, the disability insurance covers employees in question in such a way that he or she gets a certain percentage of his or her wages. For instance, a worker who is heavily pregnant and close to delivery can be considered as been disabled. Although this is not a long-term insurance policy.
4. General Liability Insurance for Small Business
Unlike the other insurance policies above, this general liability insurance is not mandatory, which is why it is the best for your business. This small business liability insurance covers the third party such as your clients, your business property, the services you offer, or your products. With this, you get to ensure your business property against physical damages, and theft.
5. Small Business Commercial Property Insurance
This insurance policy covers the commercial properties in your business such as your inventory, office space, equipment, and others against physical damages like theft, fire outbreak and many more.
There are so many risks associated with running a business, which means you can’t afford to continue running your business without having a security measure in place to help you carry your burden during bad days. With the detailed explanation above about small business insurance, you should have enough knowledge to make the right choice.