Obviously, the goal for any small business owner is to save money. Unfortunately, many small business owners tend to cut corners when it comes to small business insurance. Operating your business without the proper small business insurance can cause more harm than good. Having business insurance saves you money, time, and stress. Here’s why:
Your business is always at risk
It may not seem like it, but your small business is always at risk no matter what type of business you run. Here are three different examples:
- Example 1: If you run a small retail store and a customer walks in, there is potential for that customer to be injured on your property.
- Example 2: If you run a small screen printing business from home, your screen printing machine can abruptly break, causing you to have to shut down production.
- Example 3: If you operate out of an office owned by someone else, you may need insurance just to sign the lease.
Types of Small Business Insurance
There are various types of insurances that you can get for your business. Essentially, the type of insurance you get is going to depend on the type of business you run.
General Liability Insurance:
This insurance covers third-party lawsuits over property damage, bodily injuries, such as slip-and-fall accidents, and copyright infringement. Simply put, general liability insurance protects you from lawsuits and similar claims.
Workers Compensation:
Workers Compensation insurance simply helps pay for employees’ medical expenses when they are hurt on the job. Additionally, this protects you against lawsuits over workplace accidents, injuries, and illnesses.
Error and Omissions Insurance:
Error and Ommissions Insurance is a professional liability insurance that protects your company against claims made by clients stating that your work is inadequate or that you were negligent.
Small businesses need to ensure that they are making insurance a priority in their business. Operating without the proper insurance is risky and can lead to serious problems in the long-run. Essentially, having small business insurance will allow you to run your business confidently and effectively knowing that you are prepared for potential problems.
https://portalcfo.com/2017/12/01/business-analysis-things-analyze-business/
Manny Skevofilax is a consultant and speaker that helps his clients successfully navigate the challenges of growing their businesses profitably. Since 2003, Manny helps businesses enhance their results by using his experience in strategic planning, financial statement analysis, operations, organizational development, and team-building. His consulting firm, PORTAL CFO Consulting, Inc., has attracted clients from diverse industries in the United States and abroad.
Manny can be reached at 410-808-3441 or via email at manny@portalcfo.com.