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Business insurance for small business

Insurance is a vital part of a business. Not only is it legally required, but it exists to protect yourself and your assets, your business, and your employees.

Depending on your small business, there are a number of different types of business insurance you will need as a business owner. These include:

Casualty insurance.
This insurance, often combined with property insurance, insures the business itself (whereas property insures the location of the business.) Casualty insurance can include terrorism coverage, identity theft coverage, employee theft coverage, or flood insurance. Casualty insurance is an important part of making sure your business is covered, but the types required will vary depending on your business.

Property insurance.
If you have a small business that is not run from your home, then you will want to have property insurance (required by the law in most states). Property insurance will insure your building, property, andequipment within that is damaged from a certain risk, like fire or flood. However, it's important to keep in mind that property insurance is often very specific; for example, if you have a fire property insurance policy, it will only cover fire-so if your location is damaged by a flood, your property isn't covered.

Auto insurance.
If you have company-owned and operated vehicles, you will need a commercial auto insurance policy-don't make the mistake of thinking your personal insurance will cover the car, even if your name is on the title. This makes sure you are covered should your company car cause or sustain damage in an accident if one of your employees, or yourself, is driving it.

Liability insurance.
Another important type of insurance, liability insurance protects your business in the event of a lawsuit. If you or your employees or your small business is sued and found negligent, without liability insurance, you could be paying a lawsuit in excess of thousands and thousands of dollars.

Workers' compensation.
This may or may not be necessary, depending on your business and your employees. However, most states require some type of workers' compensation insurance, which states that workers injured on the job can't sue you or your business; instead, this type of insurance covers any medical bills or damages should the company be found responsible.

Home office.
If your small business is run out of your home, you will need to update your existing homeowner's insurance policy to include your office equipment and anything else related to your business.

Business interruption
This type of business insurance insures your cash flow and profit in the event that something occurs and you are unable to carry on business. For example, if you run an engraving business and your engraving machines are injured in a fire, the machine will be covered by property or casualty insurance. However, while the machine is being repaired or replaced, you will not have any income coming in. Business interruption insurance protects against that.

As you can see, there are many different types of business insurance that you will need for your small business. Some of them are required by law, such as liability or workers' compensation. But some of them may not be necessary for your business-if you live in the desert, for example, you obviously don't need flood coverage as part of your casualty insurance. It's best to discuss your needs with your insurance agent to find out what insurance is right for your small business.

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