Without small businesses, our country couldn’t run properly. But then why do experts say that 90 percent of small business startups fail? Just like we need car insurance, home/renters insurance, and health insurance to survive, a small business is going to need some key insurance coverages in order to thrive.
The list of reasons why small businesses fail is vast. Since every business is different, it’s hard to pinpoint exactly what you need to do to prevent your business from becoming one of the ones that didn’t make it. One major way to protect your investment, however, is by investing in the right insurance products. Which are those? Don’t worry, we’ve narrowed it down for you.
Without this type of insurance, you can’t cover the loss of your business property. This includes loss from storms, fires, vandalism, and break-ins.
Since every insurance policy is different, it’s important to read them carefully as well. Not everyone covers storms and fires, especially if you’re in a high-risk area. You might need special coverage for that. Since company property is a broad term, it’s hard to determine what’s covered–special records, buildings, equipment, and even supplies. Always consider your options with property insurance. If you can get a deal on a plan that won’t require excessive umbrella coverage, then do it.
No matter what type of business you’re running, you’re going to really need general liability insurance. This is how you defend yourself and deal with damages when something happens regarding yourself or another employee. Companies can be sued, and it’s always better to be prepared than to not.
General liability doesn’t cover everything though, which is where professional liability comes into play. If a product or service fails to perform, this insurance protects the company from further complications due to negligence. This insurance is also known as E&O (Errors and Omissions) insurance.
Some businesses with fewer physical demands think that this policy might not be necessary. Even if your workplace is a standard office with few hazards, this is still a crucial coverage. It’s the owner’s job to protect them and themselves from any injury that can happen while on the job, and every state but Texas requires this coverage from businesses with more than a certain number of employees.
At Allegiant Insurance Services, we handle all kinds of personal and business insurance needs. We provide our clients with highly personalized service to design responsible, tailored, and cost-effective insurance strategies for each individual situation. Give us a call today at (858) 771-2000 to discuss how we can serve you.
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