Learn about business liability insurance and more
Of all the many investments and expenses involved in building a business, insurance is one of the most important and not something any smart business owner should scrimp on. Whether you own a large or small business, health insurance is something you should strive to offer your employees, but you must also invest in the kinds of insurance that protect the business itself. No matter how well you manage your business, there are some factors that are simply beyond your control, and this is where your business insurance, whether a package specifically tailored to small business insurance needs or comprehensive coverage for a large company, can be a lifesaver—or, more precisely, a livelihood saver.
Business Liability Insurance
Like workers compensation, liability insurance is primarily concerned with a business's responsibilities when it comes to injury. But while workers' compensation ensures that an employee injured on the job will be compensated and their employer not sued, having liability insurance means you are covered in the event that you¬—that is, your business and its products, services, locations, etc.—are determined to be legally responsible for any injury or property damage.
Commercial property insurance is a lot like property insurance for a home: it ensures that a company will be compensated in case of loss or damage due to natural disaster, fire, flood or theft. Specific risks can be targeted with various plans, although it's always a good idea to have as many of these circumstances covered as possible, to limit the risk of substantial financial loss to your business.
Business Interruption Insurance
Because their margins are often small, this may be the most critical type of small business insurance. Business interruption insurance is meant to protect a company from sustaining deep financial losses if it is unable to operate for specified reasons, including the failure of critical equipment or natural disaster. While repairs to critical equipment are often a part of property insurance, loss of cash flow will fall under business interruption insurance.
Depending on the size and nature of your business, another kind of insurance you might consider is business travel insurance (again, this is different from the traveler's insurance that may be provided to your employees through their large or small business medical insurance policy), including company car or other company vehicle coverage.