Everything You Need To Know About Insurance For Small Business Owners


As a small business owner, you may be having life insurance, health insurance and the like.
What about business insurance? Don't you feel a business insurance is essential to protect your business? As long as everything goes with your business it is good.

But what will happen to your business, when a disaster strikes or a theft occurs in your business. This may lead to the closure of your business. Therefore, a business insurance that suits your business is very much essential. Let us see the importance of business insurance.

Business Insurance Policy:

Business insurance policy is an agreement between the business owner and the insurance provider. If a business encounters damages that may lead to the closure of the business, then the insurance company will come forward to protect your business and set right all the damages done subject to your coverage limits so that your business could continue as ever before.

Each business is unique and the risks faced by them will also be not the same for all types of businesses. Hence, the business insurance needs may also be different from one business to the other.

As far as insurance coverage for small business owners is concerned, there are a variety of business insurance types which are given below in a nutshell.

General Liability Insurance:

General liability insurance is designed to protect your business from a variety of claims that include injuries, damages to the properties of others, claims of negligence, claims of accidents and the like. This coverage will also help cover the things like property damage, medical expenses, libel, slander, legal costs, defending of lawsuits and faulty products. If a business is sued, you cannot imagine the expenses involved in it and only a business insurance can save you from such expensive costs of claims.

Business Property Insurance:

The term property defines many things in a business and it may mean different things for different businesses. The properties usually include buildings, equipment. valuable documents, furniture, electronic items, inventory, computers, digital items and much more that are essential for a business. You must make sure that you are protected by a compact business property insurance.

There are two types of business property insurance and they are "all risk policies" and "peril specific policies". "All risk policies" cover just about everything and it tends to avoid duplication or overlapping of coverages. "Peril specific policies" will cover only the named perils that are mentioned in the insurance policy.

Insurance to Employees:

A business could not run without the expertise and sincerity of the employees. Offering life and health insurance to the employees of a business will attract high quality employees. A business can also offer additional insurance to the executives. Similarly there may be some key-persons without whose service, the business could not run successfully. You can offer key person insurance to these important persons.

This insurance will protect the business in the event of the death of a key person. The benefit amount provided by the insurer may be equal to expected revenue loss and the expenses required to hire and train another substitute in place of such a key person. As against the premiums paid, the insurance is considered as a great business asset.

Business Owners Policy:

Business owners insurance policy or a business owners policy is a package of all possible business insurance policies that are required to protect a business. On most occasions, business owners insurance may include business interruption insurance, property insurance, vehicle coverages, liability insurance and crime insurance.

This policy can be customized to include some more business insurance policies as required by the business type. For a business owner, business owners policy is very much affordable as it will cost less than when the components of this policy are purchased separately.

Commercial Vehicle Insurance:

A majority of businesses own vehicles for transporting their goods and services to the places of work. Drivers are to be appointed for operating these commercial vehicles. Your employees may use their personal vehicles for your business purposes. When such vehicles are used for your business purposes, then your business needs a commercial vehicle insurance.

There are chances of your vehicles getting into accidents in which the drivers may be injured or some public or private properties or both could be damaged by accidents. Commercial vehicle insurance will provide you the necessary protection and meet the resulting expenses.

General Views:

In US, it is sad to note that a sizeable percentage of small businesses do not have proper business insurance coverage or no coverage at all. The main reason for this is stated as the majority of such business owners do not have enough funds to afford for business insurance. But, having invested a huge investment in commencing a business, don't you think that it is essential to protect your business should some disaster strikes you.

Another reason for the business owners in not opting for business insurance is that they are not prepared for a growth spurt. But, this should not happen. Each business has its own difficulties to run.

For instance, a doctor's clinic or a dentist's clinic may be having costly and speciality equipment. All these properties are necessarily to be protected by a suitable business insurance. A business must research and investigate the type of business insurance, it needs. With all such research results, if a business owner approach an insurance agent, he or she will guide you in the right direction to get an apt insurance coverage.

Before you meet an agent, you must be clear about your business risks and insurance needs. You must prepare the comprehensive list of your company's information, financial documents, physical assets, property information, potential risks and liabilities. All these information put together, will help the agent to find the right business insurance coverage for you and your business.


Not only establishing a business is important but also finding the right business insurance coverage is much more significant. As a business establishment, you are serving the public in many ways. To gain the confidence of the customers and to protect your own business, you need a proper business insurance coverage. Purchase the suitable policy immediately, if not done already.