No matter what type of business you own, you operate under some degree of risk. Sadly, no business is completely immune to lawsuits. Fortunately, however, a variety of insurance options exist to help protect small businesses.
Among the most common types of small business insurance are...
General Liability Insurance
Also known as commercial general liability insurance, this type typically covers claims associated with accidents or injuries on your property or your clients' premises. General liability policies offer financial protection in the event of bodily injury, property damage, medical expenses, libel, slander, and the cost of defending lawsuits.
Home-Based Business Insurance
Because homeowner's insurance policies don't usually cover home-based business losses, you might consider adding riders to your policy if you run your business from your home. They can help protect you against financial loss due to normal business risks such as property damage. Realize, however, that coverage may be limited and other forms of insurance might provide better protection.
Professional Liability Insurance
This type of insurance is generally geared toward professional services providers. It's also commonly known as errors and omissions insurance and protects your business against claims of damages that your advice or services caused through malpractice, errors, or negligence.
Product Liability
Insurance
If your company manufactures, sells, or distributes
products, it may be liable for its safety. Product liability insurance offers
protection against claims that a product caused bodily injury or harm.
Commercial Property
Insurance
Commercial property insurance can help you recover
financially if disaster strikes and damages things like your computers,
furniture, inventory, equipment, office building, and other property. Covered
events might include wind, hail, fire, theft, or vandalism. Some polices also
include business interruption insurance that helps make up for lost income for
a period of time if loss of your commercial property prevents you from
conducting business.
As you explore if your company may need any of these types
of business insurance or others, visit
the SCORE website for tips on how to make an educated decision. Also, consider talking with a mentor at your local SCORE chapter who can guide you to trusted, knowledgeable insurance resources.
Since 1964, SCORE “Mentors to America’s Small Business” has helped more than 9 million aspiring entrepreneurs and small business owners through mentoring and business workshops. More than 11,000 volunteer business mentors in over 320 chapters serve their communities through entrepreneur education dedicated to the formation, growth and success of small businesses. For more information about starting or operating a small business, call 1-800-634-0245 for the SCORE chapter nearest you. Visit SCORE at www.score.org.
