When you are starting a small business, every dollar counts. One best practice that all small business owners should consider is liability insurance. Most of the information out there about liability insurance comes directly from insurance providers, so it is important to do extensive research to ensure that you are relying on objective information to make business decisions.
Choosing the Right Insurance
There are a variety of options when it comes to liability insurance. The coverage that is required for your business may vary if you have employees. Outside of coverage for employees, injury and property damage liability insurance protects you from a variety of legal claims including bodily and personal injury as well as property damage that can occur during day-to-day business operations. There are many types of liability insurance that you may want to consider for your business, so SCORE offers a free, one-hour Small Business Insurance Workshop to help you get started. Learn more about the different types of business insurance that you can purchase to help minimize risk.
Speak to a Professional
After you research your options, you’ll want to speak to an experienced, licensed insurance agent to go over the fine details of your business insurance needs on an annual basis. Why annually? Things change. You may have a larger, more diverse workforce, more equipment, or maybe you moved into your very own office. All these changes need to be accounted for in your coverage plan. The type of business that you own will largely dictate which type of insurance (and how much) you will need. And remember – no one knows your business as well as you do, so take the time to consider any and all perceived risks and be sure to flag them in the discussion with your insurance agent.
Each state has its own laws for employers. If you are planning on moving your business or opening another location in a new state, this is something to pay very close attention to. Again, do your research! Just like business liability insurance, there are different types of employment insurance requirements. Check out this article on insurance requirements for employers to learn more.
Here are several additional resources that can help you choose the appropriate insurance for your small business:
- Small Business Insurance Workshop
- Five Tips on Being Adequately Insured
- InsureU for Small Business
- National Association of Insurance Commissioners (NAIC)
- Tips for buying business insurance