Risk is synonymous with starting a business. You suddenly become responsible for a host of new issues – even if you don’t have any employees. This is where insurance comes in. There are so many types that it can be a day’s’-worth of research just to figure out which ones to get. The following article will help you protect your small business by providing a handful of the most important types of insurance for your consideration.

woman-working-on-computer

1. Health Insurance/Worker’s Compensation

Even if you have just a single employee, you should get worker’s compensation insurance. Make sure to read the fine print, and read in great detail which out-of-pocket costs refer to medical expenses – you don’t want to accidentally pay for things that are covered, or assume that something is covered when in reality it isn’t. In fact, quite a few home-based business owners will get this insurance for themselves since the coverage can be a literal lifesaver in cases of medical emergency. Worker’s compensation is the basic service, and it covers:

  • Employee death benefits to the beneficiary
  • Disability as a result of on-the-job work
  • Medical treatment that derives from work-related activity

Don’t think that this type of insurance should be relegated to high-risk professions such as miners and longshoremen; even for employees that sit at a desk all day, carpal tunnel syndrome can arise from incessant typing. It’s quite possible to file a claim as a result of the incapacitation, and you should have insurance to protect yourself against this.


2. Product Liability Insurance

man-working
Any company that produces physical goods and makes them available for public consumption should seriously consider obtaining product liability insurance. No matter how good your quality control is, there’s always a scientific possibility that it incurs damages for which a consumer may sue.

Thoroughly analyse what the available coverage provides in such a case, as product liability can get very specific because of the wide range of functions that different products perform. You’ll find one that’s tailored quite well to your particular product.


3. Business Continuity/Interruption Insurance

As you can see from the name, this type of insurance basically helps you stay afloat in the event of a collapse of business operations. If something happens that shuts down most of your business, you’ll obviously lose money in all directions without this type of protection. It allows you to make up the difference that you’ll be losing on sales calls, product manufacturing or any other activities that bring in the money.

Business interruption insurance helps you pay the bills, basically. In the meantime, you can implement your disaster recovery protocols and stay afloat until you’re back up-and-running.


4. Professional Liability

This type of insurance is more important for businesses that deal in data. If mistakes in data analysis lead to adverse effects on an employee or a customer, they can bring a claim of gross negligence against your company. It has to be proven that the adverse effects resulted from a failure to perform or due to a crucial omission. This is one of those types of insurance that has a wide range of applicability; you can tailor it specifically to your business.


5. Property Insurance

If you lease the building you’re using, chances are that the building owner already has property insurance. Although you can get your own property insurance coverage in this case; it is an absolute must if you outright own the office. No matter what business you have, it needs to be protected.

Property insurance is your first line of defense against thefts and property damage. Generally, they cover fire damage, too; but when it comes to so-called Acts of God such as earthquakes, floods and severe weather, you will be well-served to check with the insurance provider before you assume these are covered.