A limited liability corporation(LLC) and a sole proprietorship need insurance. All businesses need protection. There are several types of insurance available to protect your business based on the products or services you offer.<\/p>\n
Various insurance policies should be tailored to meet your special needs.<\/p>\n
Professional Liability Insurance, including Errors and Omissions Insurance, work well for small businesses. This type of insurance protects the business and the owner from any mistakes including not delivering the services the customer expected. Customers may feel that the roof or the plumbing was not repaired to their satisfaction.<\/p>\n
An accident may occur to a property you are servicing and the owner considers the damages to be your fault. As an example, your cleaning van or plumbing repair truck may back into a fence and cause damage.\u00a0\u00a0A customer may file a lawsuit and be able to prove that you caused financial loss as a result of the property damage.<\/p>\n
The insurance company will try to settle out of court based on the limit of coverage in your policy. They will pay out based on the amount specified in your policy if you lose a lawsuit.<\/p>\n
State laws usually require professional liability coverage for some small businesses. A contractor with whom you subcontract may also insist that your business has professional liability insurance. How much insurance you carry will depend on the type of business.<\/p>\n
Your employees should have coverage based on your business. You may manufacture a small product with a workforce of only a few people. They should be covered for any injuries sustained on the job. \u00a0Many states required workers compensation insurance based on the type of business and the number of employees.<\/p>\n
General liability insurance to cover customers, visitors and guests who sustain an injury on your premises is another type of insurance that is advisable. This is third-party injury insurance that will cover medical and related costs if someone slips on a wet surface or is injured on your property in any other way. It may not be the fault of your business location, but the injured party can sue you for negligence and\/or other damages. This is one reason for keeping your walkways clean and safe during heavy rain and snow. There are many precautions that are necessary to protect employees and customers if you have a street front business.<\/p>\n
Your business may be a home-based operation where you design web pages or sell a product through a multi-level distribution system. You still need to protect your business location, your equipment, and storage facilities if applicable. You need special insurance if you warehouse products and deliver them to customers.<\/p>\n
You need property insurance to protect computers, printers, communications equipment, and other supplies that may be used in your business. You may need special materials, equipment, and products for manufacturing or services that should be insured. Commercial vehicle insurance is necessary for business cars and trucks.<\/p>\n
The business location requires protection as well against theft, vandalism, fire, and flood. Your risk insurance should also cover business interruption. A business may need to close down temporarily causing loss of income from water or fire damage. This type of insurance can cover payments for salaries, rent, and any taxes that are due as well for property damages. The policy can cover all costs until your business reopens.<\/p>\n