Running a small business is all about risks and optimism. Small businesses generally lack smooth credit flow, constant innovation, smart business management, which are important to ensure their survival. Adding to that, increased competition from large corporations in today’s globalized world is making it difficult for them to survive and sustain. Today, more than ever, they are prone to risks and closures.
A comprehensive package of insurance essential for all businesses as it ensures protection and security. It can be a powerful tool in financial security for a small business. The main purpose of insurance is to cover a risk that a small business cannot afford (at the cost of small premiums, which they can afford easily). They can save hundreds, sometimes even thousands of dollars if their owners spend some time to look at some small auxiliary things like insurance policies.
Types of insurance coverage:
Although, insurance needs vary widely from one business to another, here are some important policies that a business owner would want to consider in order to protect his/her business.
Business property insurance
Business property insurance is a broad form of coverage that protects a small business from a wide variety of losses including damage to building that houses business, tables, desks, chairs, equipment etc. due to natural disasters such as earthquakes or floods. A well-structured all risk policy can cover all the equipment (both software and hardware), valuable records and even loss of income.
There can be many things that a small business can lose and that too in seconds. None of the small business owners running a restaurant, lodging, retail outlet, etc. will ever forget the destruction caused by 2009 Great Britain and Ireland floods. Many small business owners learnt that in a blink of an eye, everything of their business can get destroyed.
Liability insurance is an important form of coverage in today’s litigation-looped world. Typically, there are four types of liability insurance, which include:
General liability insurance: It is the most common form of liability insurance. This type of insurance covers damage to property or injuries suffered by third party (customers, vendors or visitors) as a result of negligence of the employees.