There is no business that does not have risks involved whether small or large, therefore, getting insurance for your business is a basic necessity. The essence of getting your business insured no matter how small it is (provided it is eligible), is basically to provide financial security against any form of unanticipated risks that may spring up in the future. Small business insurance provides cover against any damage or financial loss in the business. It also provides for income to cover for any injury either you or your employee (if you have any) may sustain in the course of the business.
There are different types of small business insurance covers available for consideration to a small-business owner. Some of the common ones include:
- Professional Liability Insurance (Errors and Omission Insurance)
- Property Insurance
- General Liability Insurance
- Business Owner’s Policy (BOP)
- Workers’ Compensation Insurance
The type of insurance considered by a business owner depends upon the type of business. However, generally for a business owner to be able to make the claim for any insurance, the following must be considered:
- Person(whether the person concerned is part of the policy or not)
- Property(whether the policy covers the property involved in the loss)
- Exclusions (whether the cause of the loss in part of the policy or not)
- Whether the cause of damage or loss is eligible
- Whether the condition(s) for the loss is eligible
Taking small business insurance for your business will not only protect you by rewarding you with peace of mind but also create an avenue for the insurance company to pay you a certain amount of money in compensation for any serious damages that may arise during the course of the business.