Every small business needs to be protected from unforeseen circumstances. Therefore it is important that the business have insurance. Here are some forms of insurance a small business should have according to forbes.com and entrepreneur.com:
General Liability Insurance
This policy provides defense for any time a product the business creates causes any harm whatsoever, whether it be property damage or bodily injury to a consumer or employee. This ensures the business has protection if a product is used improperly.
It is an insurance that covers any harm to the building or business’s property like computers, tools, inventory, and general equipment. This helps cover assets the company uses often, so if a computer breaks or malfunctions, buying a replacement does not have to be a burden.
A more standard insurance but it does well to cover any company vehicle that may undergo some trouble. This can include company cars, shipping trucks, or delivery vans.
This type of insurance provides compensation to workers who are injured while doing their job. It provides wages and medical benefits and can be highly beneficial because it protects the owner and company from any complications legally.
Business interruption insurance
This type of insurance guards against anything that may happen that would interrupt the business’s operations. Any type of lost income because of inability to work would be covered. For example if your business burned down, the insurance would cover replacing lost net income during the time of restoration that you would’ve earned if the damage hadn’t occurred, pay the operating expenses, pay for the relocation expenses if you need to set up a temporary business front.
Additional home insurance
If working out of a personal home, general home insurance may not cover those business expenses, therefore it is important in inquire about additional insurance that would cover this specific scenario.
Data breach insurance
This type of insurance protects businesses that store any sensitive information about people. Whether it is electronically or on paper this insurance protects the business in the case of a breach.
As evidenced there are many types of insurance and within these types many subsets. As with everything, it is most important to plan ahead and do a breakdown of all services, equipment, and employees that may be involved in the business in order to choose the correct type of insurance so that if anything happens everything will be covered. It is important to note the saying “if anything can happen, it will” – which is why it’s so important to be covered for any possibility that may occur.