13 Feb Key Insurance Policies Every Small Business Owner Should Have in 2024
It’s no secret that small businesses are often vulnerable to more things than larger companies. After all, they have a limited number of resources, fewer employees, and far less in their bank accounts than larger businesses. Basically, in most cases, they lack the power to put backup solutions into place should something go wrong. Therefore, in order for these small businesses to protect themselves, it’s essential to have the right insurance policies in place. They can take the place of the protections and powers that larger companies have, while also ensuring that the company, no matter how small, won’t have to pay for problems and issues out of pocket.
With that said, which insurance policies are crucial for small businesses? Here are some to add to your list and speak with your insurance agent about.
General liability insurance is designed to protect your company from incidents in which you could be held liable. These include things like physical damage to a building or property caused by one of your employees while on the job, or even injuries to visitors that occur in your building. For example, if a client slips and falls in your lobby, breaking their leg in the process, they could end up suing your business for their hospital bills. This is where general liability insurance comes into play.
Businesses that provide a service for their clients need to have professional liability insurance policies in place. This way, should something happen to go wrong with the work that they do, they’ll have insurance coverage to help with paying lawsuit settlements and legal fees. Tax accountants are a good example. They prepare returns for their clients that contain the correct information. However, if a mistake is made and the IRS goes after the client, they could turn around and sue the tax accountant. Professional liability insurance provides some protections in this situation.
Commercial Property Insurance
Small businesses that own or lease a building need to have commercial property insurance. This type of policy provides coverage for the building and the grounds around it should something happen, like a large storm that damages the roof, a hurricane that takes out the windows, or a fire that causes part of the structure to collapse. Without property insurance, your company could end up having to pay for these repairs out of pocket, which would be made even more difficult without a building to work in.
Workers’ Compensation Insurance
If you have an employee other than yourself, your small business needs to have a workers’ compensation insurance policy. This insurance pays for your employees’ medical bills, lost wages, and more after an accident occurs in the workplace. If the accident turns out to be the company’s fault, for example, due to a missing “slippery when wet” sign, then the insurance policy will kick in.
Consider Spivey Insurance
If you need insurance for your small business, contact Spivey Insurance today. Our skilled agents can help you choose the right policies and coverage amounts necessary to protect your livelihood.