Insurance for Your Business

With starting a small home business, it's important to include business insurance when creating a start-up plan.  It's important to protect assets with insurance and there are many types of insurance to consider.  This can be anything from auto insurance, liability and asset protection insurance.  Some small home businesses require all of these types of insurance and some only need one or two of them.  Here is an overview of each type of insurance to make the decision easier.

Business Auto Insurance is for any vehicle that is used for business-related trips.  Should there be an accident while on a business errand or trip, the vehicle needs to be insured by business auto insurance.  Small home businesses have any assets need to have a business auto policy with no less than $300,000/$100,000 in coverage.  This means that the insurance company pays $100,000 for each person that is involved in the accident, with the maximum being $300,000.  This type of coverage allows settlement with all parties involved, and protects your other assets.

Key Man Insurance covers anyone that would be the biggest asset to your business.  This is a type of life insurance policy where if the “Key Man” were to die, the business would receive money to stay afloat while either looking for a replacement or liquidating the business.  This money can cover day-to-day business expenses and help to keep payroll running smoothly during the transition.

Liability Insurance protects the small home business from any liable suits.  Should a client or customer come into a business and slip and fall, the liability insurance will protect the small home business owner from a long and drawn-out law suit. Liability insurance can also protect a business owner if their business involves doing work on job sites.  For example, if a tree trimmer cuts a tree and a branch falls on a car damaging it, liability insurance would cover this and reimburse the owner of that vehicle.

Asset Protection Insurance contains different types of coverages.  This type of insurance usually covers buildings and contents, similar to homeowner's insurance.  If the small home business owner has a specialized business, asset protection insurance has specialized coverages for niche markets.

A small home business owner has to consider all types of losses that could possibly occur in their business and be sure to have the right insurance to cover every type of loss.  Without the proper types of insurance, the small home business owner is leaving their business unprotected and vulnerable to law suits.

When starting a small home business it's advisable to consult your insurance agent for the types of insurance you need.

 

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