Partnerships, Cooperatives, Sole proprietorship, and sometimes in fact, Limited Liability Corporations, are amongst the type of businesses that may be referred to as ‘small businesses.
There are different indices to determining what would qualify as a small business; like the ownership, the financial standing, the taxes, amongst others, but all these do not shield it from the day to day mishaps that happen in the operation of businesses.
It is for this reason small businesses are encouraged to have insurance policies. On Collected.Reviews, there are feedbacks about business insurances shared by business owners that every owner must look through before deciding on what policy to settle with.
Below are four insurance policies small businesses must have:
I. Liability Insurance:
A defect in product, an error in how service was carried out, advertising injuries, medical expenses for injuries that happened in the course of business, claims of libel and slander, are just a few amongst what a general liability insurance would cover for. These are very common mishaps that happen in the day to day operation of business, and for small businesses that may not have the best financial standing, these claims may wreck and cause irredeemable losses. This is why having an insurance policy to forestall these losses are important.
II. Property Insurance:
Property insurance would provide coverage for building structures and the contents in it. In the case of a fire, theft, or an unexpected nature occurrence like earthquakes and hurricanes that puts the structure and the goods contained therein at risk of getting damaged, a property insurance policy provides a measure of peace for the business owner. Starting all over again has never appealed to any, and the financial implications of a new start are no walk in the park either.
III. Workers Compensation Insurance:
Business owners tend to ignore this type of insurance, especially for those regarded as ‘low risk’. Interestingly, a pricey medical claim is often enough to convince most otherwise. For injuries, death, and employee wage defaults that happen in the course of doing business, compensation insurance is necessary to be had by every small business owner.
IV. Product Liability Insurance:
To deliver a good and non harmful product is the plan of every business owner (well, most), but again, as happens with businesses, mistakes happen, and seemingly ‘simple’ mistakes may lead to very complex claims by clients and customers. If you are selling any kind of product, this is an insurance policy you must not look away from.
Business owners sometimes argue that the money that goes into having an insurance policy is a waste, as it may have been years with no use for it. It is however better to be safe than sorry, especially for small businesses that may not have the financial capability to deal with losses that may come as a result of these contingencies. The law also requires some insurance to be in place, and legal dealings contesting the existence of your business are just about the last thing you need as a small business.