Small business owners insurance should cover a range of perils

Small businesses in particular are vulnerable to the costs of lawsuits, damages and even temporary work stoppages due to a variety of potential perils. Having sound small business owners insurance coverage can keep a business running even when bad things happen.

Small business general liability insurance helps protect against the costs of defending legal cases and for damages caused by small businesses, their employees or their goods and services up to policy coverage limits. Small business general liability insurance also helps pay the costs of any bodily injuries caused during the course of business, such as if a delivery vehicle is involved in an accident that causes injury to others

Property insurance for small businesses also provides a great deal of protection that can keep a business going in the event of a fire, theft or other peril that might be covered by the policy. Property insurance for small businesses would help protect the premises, equipment, tools, computers, furnishings, intellectual property and other business assets against fire, theft, vandalism, smoke damage, external flooding and other perils.

A small business owners policy for smaller commercial operations provides protection against temporary upsets of the business, such as when a fire damages a facility, and protects against damages to vehicles, property, liability and crime insurance all bundled into one package for additional savings. Buying the various coverages separately would cost a great deal more.

Commercial auto insurance for small businesses that rely on cars and other vehicles as a regular part of the business need proper coverage. A commercial auto insurance plan protects vehicles that transport workers, goods or equipment as well as the vehicles against damage or collisions.

Worker’s compensation insurance is another policy all small businesses need. Worker’s compensation pays employees who are injured on the job and are out of work for a time. If a worker is hurt and accepts worker’s compensation payments, then that worker gives up the right to sue the employer for compensation. All state by law require employers to carry worker’s compensation insurance if they have workers who pay federal payroll taxes.

Small business owners insurance also should provide professional liability insurance, which also goes by errors and omissions insurance. The coverage protects small businesses against losses incurred by errors and omissions on forms and other areas in which mistakes can cause financial losses. The errors and omissions coverage is in addition to general liability insurance and covers perils not covered by general liability insurance.

Another important insurance coverage for small businesses is directors and officers insurance coverage, which insures the directors and officers of a firm against actions by them that have a harmful effect on the business, such as being sued for a personal matter and having punitive damages ruled against the company. And a good small business insurance plan should have data breach insurance coverage if valuable personal or company information is breached by the loss or theft of paper files or by the loss or theft of electronic files. By Mike Heuer