Every business, no matter the size needs to be protected against claims and lawsuits arising out of unforeseen eventualities. Unfortunately, this need is often overlooked by many small business owners particularly when they are starting. They concentrate more on the visible side of the business like how and where to set up a shop and evaluating their market strategies while ignoring the soft but crucial aspect that is business insurance.
Coupled with this, many people including small business owners still view business insurance as an expensive luxury. An unnecessary cost that they need to avoid. The fact is that the cost notwithstanding, an elaborate business insurance plan should be made a part of the budget.
Benefits of Insurance to a Small Business.
The benefits of taking an insurance cover for a small business are many. The following are some of them.
Liability and Damages
Insurance insulates a business against liabilities arising from injuries, accidents, product damages happening while in or out the business premises or during normal business operations.
Thieves most of the time target new business. Small businesses are at higher risks of being broken into by thieves as they have portable but valuable items. Insurance covers the business from bad loss due to theft.
Illness and Injuries
Insurance protects the business from suffering big losses paying medical bills for sick or injured staff members.
While in operation, sometimes the company cannot avoid being sued for whatever reason. Lawsuits can be very expensive to the extent of draining the business of its valuable resources. Insurance can play a crucial role in reducing the cost of litigation.
Types of Insurance for a Small Business
There are various insurance policy types for small businesses. It is important for a small business owner to get the services of a qualified and competent person to conduct a risk evaluation for the organisation and advise on the best insurance covers to take.
Worker’s Compensation Insurance
This covers the employees who get injured while working for the business by providing them with medical benefits and wage compensation. This way, the injured employee loses the right to sue the business for the same unfortunate occurrence.
General Liability Insurance
This policy covers any physical damages and injuries to a third party or their property. It also protects the business from claims of libel.
Professional Liability Cover
This policy insulates the business from damages when it is claimed that it has not rendered its services professionally. This insurance is ideal for those business entities providing professional services like doctors, consultants, accountants e.t.c. It is also known as Errors and Ommissions Insurance.
This covers all motor vehicles belonging to the business against both physical vehicular damage and human injury arising from an accident.
Business Owner’s Policy
This is ideal for those small businesses that own their own valuable property like buildings and equipment. It provides cover against damage to such property.