How to Protect Your Small Business

Owning a small business can be one of the most rewarding feelings in the world—being your own boss, building something from the ground up and succeeding against the odds. However, it’s important for small business owners to understand the risks associated with their endeavors, as well as how to minimize them. This is where business insurance comes in.

Running a small business can mean constantly weighing costs and benefits. The peace of mind that comes with a business insurance policy is well worth the expense, even if you’re operating a small business in a seemingly low-risk industry. After all, no one can predict the future. One natural disaster or burglary could force your business to close its doors. Luckily, with the right coverage, you can ensure your business remains on track even if the worst should happen.

Types of business insurance

Business insurance can come in many forms. What a business will require depends on the type of industry it operates in and how it is structured.
The most common type of business insurance is general liability coverage. This insurance protects your business against legal action associated with accidents and injuries. Product liability coverage, on the other hand, provides protection from accidents and injuries arising from a faulty product.

If your business doesn’t manufacture or sell products, you may require professional liability coverage. This insurance protects businesses that offer services, such as automotive repair or tax preparation, from legal action associated with malpractice, negligence and errors.

In addition to insurance policies offering coverage from legal action, small businesses must also take steps to protect the actual properties in which they are housed. Commercial property coverage will help businesses pay for the loss or damage of business-related property, such as computers, stock items, documents and the building itself. This type of insurance covers businesses for any damage occurring as a result of fire, smoke, vandalism or other detrimental factors.

Of course, it’s also important to properly insure small businesses operating out of a residential home. Homeowners insurance policies rarely cover damage and loss from home-based businesses or liability claims stemming from such operations.

Benefits of business insurance

The most obvious benefit of business insurance is knowing that you’re small business will stay secure if a financial loss arises from liability or property damage. However, that’s not the only advantage. If your business needs to take out a loan or find investors, being able to show that it’s properly insured can go a long way toward easing the minds of potential partners. Getting a personal loan or attracting new investors will be much easier with business insurance.
Additionally, owners who rely on business-to-business transactions will find it much easier to conduct business when they are insured. Customers, clients and vendors want to work with businesses that will be around for a long time and won’t be wiped out by sudden damage or loss.

Legal requirements

Besides these benefits, in many cases, it’s also a legal requirement. If a small business has employees, it must have worker’s compensation coverage. If a business doesn’t have this type of insurance, it can face penalties, as well as be required to pay for injuries incurred by workers on the job. And depending on their location, some businesses are required to have unemployment and disability coverage.

Got questions? Mountain America Insurance knows you’ve put your heart and soul into your business and we want to help ensure your success. We can address all of your concerns and help you identify the types and amounts of coverage you need to protect your company. Come see us or give us a call.

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