Small business insurance is designed primarily to give business owners and their employees’ financial protection in case there is an unexpected accident involving the owner, staff, clients, or the property of the business. Typical claims for property damage or client damage are in the neighborhood of $30,000 per year. Most of these claims are settled out of court and no injuries are reported. This may not be the case if you have inadequate insurance coverage.
If you are planning to employ employees or any part of your business involves the operation of vehicles, you need to consider purchasing property protection and general liability coverage separately. Property protection coverage will provide a source of income in the event of a total loss of the assets of the business. General liability coverage will pay medical expenses and any legal fees in the event of an injury on-site. This includes both mental and physical pain and suffering. It also covers you against slander, malicious prosecution, and intentional or negligent damages. Shoplifting and other related activities are not included in this coverage.
When it comes to the purchase of small business insurance it is important to understand the different types of coverage offered by many insurers. You may wish to enlist the services of an attorney to help you evaluate your options. The Small Business Administration website can assist you in finding answers to frequently asked questions. You can also learn about common policy features such as excess, collision, liability, economic damage, and business interruption. Each insurer has different limits of liability that they will cover. Knowing these limits can help you determine what the maximum amount of out-of-pocket expenses that you can incur will be.
There are a few legal protections that are included in most policies for small …Read More