As a small business owner, you are responsible for protecting your business from a variety of risks as the nature of running any business guarantees a certain level of risk. Thankfully, there are many ways to protect your assets – from getting a top-notch security system installed to insisting on safety training for all employees.
One of the best ways to protect your business is to gain the right to file insurance claims. There are many different types of insurance available, and what you should get is largely dependent on the nature of your business. A retail business will need different insurance than a manufacturing business. Still, there are some insurance needs that cut across all businesses, and as a small business owner, you should aim to have these types of coverage.
Suppose you own a small retail business. You have leased a storefront and filled it with inventory. One day, a fire starts in your store and destroys the building and all of your merchandise. Or suppose your manufacturing business owns its own building. A severe storm comes through and damages the roof of your building.
In either case, having property insurance, which insures the physical assets of your business, will mitigate the financial burden of restoring or replacing your property.
No matter what type of business you have, there is always the risk that someone could sue you for damages. For example, say a customer slips and falls in your store because you failed to clean up a spill. The customer could sue you, and if they win, they will be awarded damages that your business will have to pay for. Or suppose one of the products you manufacture is defective and causes injury to a consumer. Again, the consumer could sue you, and if they win, your business will be responsible for the compensatory award. Liability insurance protects your business from these types of risks by covering the cost of defending against a lawsuit and, if your business is found liable, paying damages that are awarded.
Workers’ Compensation Insurance
Generally, if you have employees, then you are required to have workers’ compensation insurance. Suppose an employee in your manufacturing business is operating a piece of machinery and is injured when the machinery malfunctions. Workers’ compensation will cover the cost of the employee’s medical treatment and lost wages while they are unable to work. There are different consequences of not having workers’ compensation insurance. For example, in most states, if you are caught operating without workers’ compensation insurance, you will be subject to stiff penalties.
And if one of your employees is injured on the job and you don’t have insurance, they could sue you to recover their damages. As a small business owner, you need to make sure you have the right insurance to protect your business from the many risks it faces. Property insurance, liability insurance, and workers’ compensation insurance are three types of insurance that all businesses should have. Don’t wait until it’s too late – get insured today!