When you own a small business, you not only need to be concerned with the potential losses that could be suffered on your end of the company, but also the losses those that work for you can experience. This concern is emphasized by knowing that the average liability claim for a “small” business is $15,000, which is not easily or immediately affordable for most small business owners. What is more manageable for those who have a business or are considering starting a business is paying monthly fees to make sure your business is insured, but the types of insurance your business will need varies depending on what kinds of activities take place. For example, if you are the only employee of your small business then there is no reason to purchase workers’ compensation insurance, and if your business does not utilize vehicles for work purposes, then commercial auto insurance is not needed. For businesses that do have employees and use vehicles, workers’ compensation and commercial auto insurance can help protect company assets and make workers and business owners alike feel secure and protected.
Regardless of the activities that the business undertakes, it is always a good idea (and sometimes legally required) to have general liability and property insurance, respectively for bodily injury or property damage, and lawsuits about errors or omissions in timesheets. Furthermore, these two policies can be combined into something called a “Business Owner’s Policy” or BOP, but this policy does not fill in all the gaps. For further coverage, the business owner can purchase commercial umbrella insurance for times when their original policy does not cover their claim or when the original policy does not cover the entire payment. For natural disasters such as floods and earthquakes, commercial flood and earthquake insurance is available, especially for those living in areas such as California where earthquakes are quite common.