The right type of insurance for your small business can provide you with peace of mind both in your working and personal life. Here, the Youngs Insurance Georgetown team outlines what kind of coverage you may need.
Why get insurance for your small business?
Every business has assets, no matter the size. Anything from office space and equipment, vehicles, and inventory, to indispensable employees, partners, and even yourself, count as as asset, because they are of value to your business.
If something happened to your assets, whatever they may be, it could put your business in jeopardy. So to protect you assets, and thereby your business, from potential risks, business insurance is a must.
Types of Insurance
Each business is different, and has different assets, so each business has different insurance needs. That being said, the following types of insurance are the most commonly taken out by small businesses, and may be applicable to yours.
The Youngs Georgetown team will help you parse your options, and create a coverage plan that works for your unique business.
Insurance for Business Owners, Partners, and Essential Employees
The loss of a key person can have a devastating effect on your business, and could put your livelihood at risk. Insuring the essential members of your team can help protect your business should someone leave, fall unexpectedly ill, or pass away.
Life insurance protects your family if something happens to you. This is especially important if your business is a sole proprietorship, since the owner (sole proprietor) is personally liable for all the debts of the business.
Disability insurance provides income for a designated period of time during which you are unable to work due to an injury or illness.
Partnership Insurance or Buy-Sell Insurance
Partnership insurance will allow you to purchase the shares and continue running the business if your business partner passes away.
Critical Illness Insurance
Critical illness insurance provides a lump sum benefit if you are diagnosed with a critical illness.
Key Person Insurance
If you rely on certain key employees to help run your business, key person insurance protects you against their loss.
Earnings & Property Insurance
You need to protect your property and earnings in the event of a disaster or emergency. There are a few different types of earnings and property insurance:
In the event of destruction or damage to your property, property insurance covers the property and buildings owned by your business.
Contents insurance covers assets that are kept at your business premises. If you run your business from home, you will probably need separate contents insurance for your business assets.
Business Interruption Insurance
If you need to halt business temporarily due to an emergency or unforeseen event, business interruption insurance will cover your loss of earnings during that time.
Vehicle insurance covers any vehicles owned by your business.
Occasionally, you, your employees, your equipment or your suppliers may make mistakes that end up hurting your customers, your employees or others who are involved with your business. To protect your business from being sued for these mistakes, it may make sense to take out some liability insurance:
General Liability Insurance
General liability insurance covers injury to clients or employees on your business premises.
Product Liability Insurance
Product liability insurance offers protection in the event that your product is defective or causes harm to those using them.
Professional Liability Insurance
Professional liability insurance provides protection if you are sued by a client for omission, errors, or negligence when undertaking professional services.
Cyber liability insurance protects your business in the event of a lawsuit stemming from an electronic security breach. This can include the theft of devices containing organizational, client, or employee data.
Accounts Receivable Insurance
When clients don't pay you for your service or product, you still have to pay your employees and suppliers, without the corresponding revenue. Accounts receivable insurance, otherwise known as credit insurance, can help protect you from this risk.
Offering health insurance for employees can be a key factor in recruitment and retention.