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Explaining small business insurance in normal terms

groupplanning26668223.jpgEvery small business must have insurance to protect themselves and their assets. What a number of owners do not realize is that they can actually lose their homes, personal savings, and many other things if they do not have liability insurance and plenty of coverage to stay safe. Have you taken the time to insure your small business and are you protecting your company? Workers compensation is not enough to keep you safe and it often fails to provide adequate protection to the company and benefits to the individuals. Here are some things you need to know about small business insurance:

Workers compensation
This is a legally mandated insurance option that every business must pay for. It is designed to protect a company from lawsuits and it is designed to provide employees with benefits if they are injured on the job. Every state has workers compensation insurance and you must pay for it even if you or your employees never use it. Coverage is provided to the employee and it is assumed that if they accept the payment from workers compensation insurance that they will not be able to sue the company. Some people still sue the company and win and for a small business owner, it can bankrupt you. Call your attorney to find out what you should do about adequate coverage for your companies protection.

Disability Insurance

In some states like California, it is mandatory to have disability insurance. What does disability insurance do for your company? If an employee is injured on the job to the point that they cannot work, it will provide additional benefits to them. This is on top of workers compensation as it helps with their healthcare expenses and other costs that are associated with their injuries.

Auto Insurance
If you have business vehicles and your employees drive them, you need to get auto insurance. What it will do it protect you from any accident claims by the other party if they are trying to sue your company for damages. It is illegal to drive a vehicle without auto insurance in every state so you need to purchase it. Talk to your auto insurance company that you use for your personal vehicles to see if they can cut you a deal. Some companies will offer a reduced fee if you already have a car insured with them and you haven't had a lot of accidents and claims.

Property Insurance
Some buildings will offer property insurance as it is designed to keep their building safe but it can also help to cover your needs. If they do not have it, you will need to get property insurance. It's called renters insurance if you don't own the building. It's really cheap so its not a big deal to pay for but it will cover just about everything you own. If there is a fire or other issue, the company will replace everything with brand new equipment.

Omissions Insurance
Dealing with billing? You should look into omissions insurance as it will cover lawsuits based on human error. We all make mistakes and if you fail to cancel a clients account and you keep billing them, a lot of people will not only demand a refund but they will also demand more money for other reasons. Omissions insurance will be able to offer you about $1 million in coverage and it is a great thing to have if you are worried about human mistakes.

Get a good attorney on your side to protect your business. Even if you run everything right, you can still have a loophole somewhere and it will lead you to lose your business if you aren't careful.

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