Business Insurance
There are a lot of bases to cover when it comes to making sure that your business is legal. Small business insurance is one of those bases as it is sometimes required by law. Now is the time to start thinking about business insurance. You may be asking yourself: Why Do I Need Business Insurance and What Does it Do? A small business needs insurance because it will cover any costs associated with property damage and any liability claims. If you do not have business insurance, you will have to pay out of pocket for damages and legal claims against your small business. This could be devastating down the road. Always speak to an insurance agent before picking a certain type of insurance just to be sure that you cover your bases.
Do a BOP
No it’s not time to dance or do the blitzkrieg bop. A business owner’s policy or BOP is what a lot of small businesses use. It combines business property, income and liability insurance under one policy. This is a great way to go because it covers everything. This is the type of insurance that I recommend.
For instance, when it comes to business property it isn’t just the physical location of your business but it also includes all your tools, materials, documents and even furniture that you use in your business. Business liability will cover the costs of any claims made against your business like if a customer trips and hurts themselves on your property and decides to sue you. Business income insurance replaces lost income when your business isn’t operating because of a covered loss. If a fire damaged your business and it needed to close for repairs, your business income insurance will help replace the lost income.
Is it required by law?
Certain business insurances aren’t required, and you may not need them right away. If you operate your business out of your home and you’re just getting started, it’s an option to keep on the back burner for if things grow and you need to expand.
There are a lot of different business insurance options out there so be sure you do your research when you’re ready to purchase a plan. It’s important to research the laws in your state as well because the government requires certain insurance like workers’ compensation insurance, disability insurance and unemployment insurance. These types of insurances are only necessary if you have employees.
Your insurance needs will be different than another business depending on what protections you require. As your business grows, your coverage may also need to change. Different industries will require specific business insurance for their unique circumstances.
Keep It In Mind
You might not need business insurance yet, but don’t forget about it when your business grows. It’s a good idea to research policies now so that when you do need it down the road then you won’t be caught off guard. For more information and details about business insurance be sure to visit the U.S. Small Business Administration’s website.
