When you're a small business owner, you pour yourself into building your business's name and reputation in your community. We don't prefer to dwell on the negatives and the what-ifs that distract us from the now. But the reality is the fact that if you don't take measures to protect your business in the future you could find yourself in the devastating position of having to shut your company down. It takes only one disaster, one stroke of bad luck, to spell doom for a small company. This is exactly why there are so many various kinds of small business insurance – to protect your business from its specific and unique risks.
Your business faces a variety of perils every day, there are corresponding small business insurance coverages to protect you from them. Here are ten of the most common perils and insurance coverages that you simply might wish to consider for the business. While you read through the various types of coverage that are out there, think about your company and whether or not you will find any gaps in the coverage you currently have.
1. Property insurance.
Think about your premises. Obtain a good mental picture of it. Your facility – whether it is a store, office, or workspace, could very well be the largest asset to your business's name. That's why it's so important to make sure that it's protected from disasters big and small.
To ensure that you have a property insurance policy that fits your company needs, figure out exactly what the biggest threats for your business are. Knowing what you ought to shield yourself from may be the first step of the battle. Keep in mind that most property insurance policies will cover the replacement worth of the building itself, meaning that it will be replaced as if it were new, but the actual cash value of the contents of your business, meaning that the insurance coverage company will pay the depreciated value of the contents of the building.
To figure out how much coverage you'll need, you have to take a listing of all your business's assets. You need to consider how a loss could affect your business and figure out which losses are the most likely to hit your business.
2. Business interruption insurance.
Business interruption insurance often gets overlooked, but it is a lifesaver for businesses that are faced with a disaster (like a fire) that causes them to temporarily close their doors. It takes time to create a building back from a tragedy like that, what with all the rebuilding and repairs that need to be done.
4. Key person insurance.
You know how in many businesses there's that person which makes the world go round? Like, they're that person who keeps everything running? Well, your company probably has one, too. Imagine what would happen if that person were no longer within the picture. What if something sudden and tragic, like a death or disability, happened? Would your company go on, or would your reputation and profits suffer? How would you cope? You'd also have to find a replacement for that person, and that's not easy.
If something happened to that person, things would probably go all topsy-turvy. But key person insurance can provide you with some stability when you figure out how things are going to go on.
5. Workers' comp.
Okay, so there have been two guys and a ladder-
A workplace accident can become a really big deal really fast. Accidents happen inside a split second, but the effects can go on for much longer than that. Do you know what you will do if one of your employees got hurt around the job? Do you understand your obligations to the injured employee?
Any of those insurance coverages could be a real lifesaver for your business if your disaster happens. Sometimes things are completely out of your control. But we sometimes can prepare. Small business insurance coverage is key to protecting your organization, but prevention, training, and scheming – a.k.a contingency planning – are also crucial if you wish to give your business an opportunity of weathering a (figurative or literal) storm.
When you're thinking about your small business insurance, you have to be on the lookout for gaps in your coverage that might leave you open to risk. Should you find any gaps, you have to talk to your agent and figure out a method to close the gap. You need to make sure that your company is completely protected. You wouldn't take an umbrella with holes inside it right into a rainstorm, can you?