As every other small business owner, you know that every dollar counts. This is understandable considering that you invested resources, time and passion in order to build what you have today and it becomes your obligation to provide the necessary protection for your business. With all the responsibilities falling on your shoulders at present, the lack of time might impede you to think further in the future about possible obstacles that might threaten your business. However, you cannot anticipate natural disasters or legal liabilities and for this reason, the wisest decision is to research various types of insurance imperative for your small business.
How to buy insurance
If you decide to buy insurance, you have to follow several steps. The first thing you have to do is to evaluate your risks. Even though you cannot foresee events in the future, as we mentioned, you can explore the possibilities and make sure that you insure every aspect of your business. Then you need to contact a reliable insurance agent Knoxville and find the most adequate policies for your needs. You cannot complete this process without professional consultation so you should not neglect the importance of finding a licensed insurance agent.
Types of insurance for small business
- General liability insurance applies to all types of businesses, regardless of their size, including home-based ones. The policy protects you from financial loss in case of property damage, medical expenses, defending lawsuits, libel, settlement bonds and more. Even though you have not caused harm personally, you are responsible for the actions of your employees during work schedule and you must be prepared if customers or other people decide to sue you.
- Commercial property insurance is suitable for those businesses that have a considerable amount of physical assets. By choosing commercial property insurance, you have the certainty that in case of hailstorms, fire, wind or vandalism, the policy covers the financial loss caused by the company property damage. When it comes to natural disasters, you cannot take enough safety measures but the right insurance will help you maintain your budget.
- Professional liability insurance, also called Errors and Omissions insurance, provides defense for your business in case of negligence that leads to physical damages or rendering services improperly. You should be aware that general liability insurance does not include this protection so you really need to make the difference between the two. Accountants, lawyers, real estate agents, hair salon owners and many others should consider this type of insurance.
- Product liability insurance is adequate for those companies that manufacture, distribute, retail or market various products because it offers coverage if a product defect causes physical or property damage to customers. Once again, because you are the owner of that company, you might need to face financial claims for medical expenses or repairs.
- Auto insurance offers the necessary protection for the corporate vehicle, of course. Whether you rely on your vehicle to carry employees, equipment or products, you need to make sure that you are prepared for collisions or other unfortunate events that might cause damage and affect you financially.