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Running a small business can be demanding enough without the added worries of a potential disaster.

Get the best small business insurance you can! Such a coverage provides peace of mind that your business venture is not halted by anything but your own mistakes. Here is the process: 

  • Analyze the type of business you have

  • Find out the fundamental insurance required by your State; e.g., a business with employees, no matter the size, must provide 

    • Disability Insurance
    • Unemployment Insurance
    • Workers Compensation Insurance
       
  • Next, find an insurance policy that provides a layer of protection and coverage that you need for your type of business and region

    • Property Insurance: Protects personal property you have invested in the company and business assets you have acquired
    • Commercial Property Insurance: Important if your business operates such properties 
    • Disaster Insurance: Protection from natural disasters
    • Liability Insurance: Protection from lawsuits
    • General Liability Insurance: Protection from medical expense, slander, lawsuits
    • Professional Liability Insurance: Protection from monetary loss through negligence and professional error
    • Product Liability Insurance: Protects against potential faulty products which may pose a risk to consumers
    • Home-Based Business Insurance if you operate your business from home
       

You can learn more about the various types of insurance policies at the US Small Business Administration website and the National Federation of Independent Businesses.

But the best way is to find a reputable insurance agent who works with small businesses in your area.

I recommend that you get three quotes from licensed insurance agents and compare coverages. Balancing the financial cost of the insurance and the coverage provided (risk mitigated) is an important task, so be thorough and thoughtful in this regard. 

It’s vital that you keep on top of the necessary insurance your small business needs. This is a moving target as the insurance needs will fluctuate with your business growth, new product lines, changing regulations, etc..

Contact the author: frank.medina@scorevolunteer.org