Understanding The Intricacies Of Insurance

3 Types Of Business Insurance Your Small Business Needs

If you are starting your own small business, it's important to remember that just because you may have few employees, you are still a businesses. You need to protect your assets and yourself with different types of business insurance. If you aren't sure about which types of business insurance you may need, check out these four you must consider.

General Liability Insurance

General liability insurance is the most basic type of business insurance you need, and every business: small or large should own this type of policy. One reason general liability insurance is a must is that it protects you if someone is injured. For example, if you have someone visiting your business, and they break a leg, they may be able to sue you, but your general liability insurance will pay for those costs.

General liability insurance also helps protect you in the event you inadvertently libel or slander someone. When advertising why you are better than your competition, it is easy to accidently say something that may get you in trouble, but your general liability insurance protects you. It also is designed to protect you if someone infringes on your copyrights or patents, which makes it much easier for your attorney to protect your patents.

Commercial Property Insurance

Commercial property insurance is something you need to have if you own any commercial property. This includes the actual building and exterior signs. So if they are damaged by a covered disaster, the insurance company will help pay for your to rebuild or relocate your business. However, even if you don't own the building in which your business is located, you still must consider commercial property insurance.

This type of insurance also covers the loss of business personal property, such as equipment, inventory, etc. It even may provide some money for lost income, such as payroll expenses. When choosing your commercial property insurance policy, work with your attorney to choose a plan that works for you. Some policies cover all the most common disasters, while other policies only cover what is most common in your area. For example, if you live in Florida, a plan that covers the most basic problems may not include hurricane coverage, but a peril-specific plan may.

Professional/Product Liability Insurance

Professional and product liability insurance are additional insurance to cover you in the event you are found liable for some type of injury or damage. However, they are designed specifically to cover your products or services. Product liability insurance covers any item you manufacture or distribute, so if it ends up failing and hurting someone down the line, your insurance will pay for court fees and settlements.

Some businesses, however, don't have products. They have services, such as a doctor. In this case, you want professional liability insurance. This is also known as malpractice and errors and omission insurance because it protects you if you make a mistake while providing a service. If you aren't sure if you should consider professional liability insurance, speak with your attorney. When in doubt, however, if you provide a service, you should consider this type of policy because even a disgruntled client may decide to sue their hairdresser.

If you have just started a small business, you must ensure you are adequately protected. Small business can easily be taken advantage of by larger companies. Without proper protection, they can even steal your ideas, so make sure you are covered. To get started, contact an insurance agency, such as United Counties Insurance Group, in your area today to find out what type of protection you need.