Small Business Insurance Coverage: 3 Types to Consider

Every entrepreneur needs basic insurance. However, it is advisable to make sure you are very well protected. You never know what problems might arise, and being well covered for every eventuality will give you a lot of peace of mind. When choosing which insurance to take out, try not only to consider cost-cutting options. Be sure to read the fine print and check the details. Higher premium insurance policies may be harder on the wallet, but if a problem arises with your business, you’ll be very thankful for it. Below are three types of coverages to consider for your small business that will help you cover most, if not all, contingencies.

General liability insurance

The General Liability Insurance is the basic insurance that all entrepreneurs are obliged to take out. General liability insurance protects your assets. It covers you if there is property damage or injury caused by you or your employees, and pays for all liabilities if someone is injured on your property. This insurance also covers the cost of any legal fees and will cover any settlement fees you may have to pay if you are sued.

Contents insurance

If you rent a commercial property, you probably don’t have to worry about home insurance. However, it is best to check with the owner what insurance they have on the property and what it covers. With contents insurance you are protected against all kinds of possible problems such as fire damage, vandalism, smoke damage and theft. You can also consider supplementing the basic policy with loss of income and stagnation damage, to secure your income if the company can no longer operate due to material damage. If you rent, you can also take out tenant insurance in addition to the owner’s home insurance. If you own your own building, you must take out home insurance to be sufficiently covered.

Life insurance

Purchasing life insurance isn’t a requirement for owning a small business, but it’s a valuable additional insurance policy to consider. Life insurance protects your family and loved ones financially after your death, giving you and your family peace of mind that they will not run into financial difficulties. In the event of death, the insurance company pays a sum of money to the beneficiary. Definitely worth considering if you want to protect your family.

Whatever insurance or supplementary insurance you take out, make sure you read the fine print carefully. Check for any clauses that may make it difficult for you to make a claim in certain situations. See exactly what the insurance covers for you and discuss with your broker or insurance company what you have ambiguities or uncertainties about. Consider asking your broker or insurance company about business package insurance. This kind of policy can include difference insurance such as professional liability insurance, business interruption insurance, and income protection insurance, making it much more cost-effective. Remember that you also check the small print with a business package insurance policy and know exactly what you are insured for.