Small Business Business Insurance Guide

Unexpected losses can pose extreme financial damage to a business, whether they come from property damage, accidents in the workplace, or professional errors. When you have the right small business insurance in place, you can protect your company against the impact of negative events.

Several questions might run through your head, such as, “What insurance do I need for my LLC, corporation, or other business type?” It depends on several factors, including your industry, the size of your business, your clientele, and even your location. Seeking assistance from an insurance broker who has business experience in your industry can help you make smarter decisions. Finding corporation or LLC business insurance shouldn’t be hard, so get informed below.

General Liability Insurance

General liability insurance protects your business against all sorts of claims resulting from something going wrong with your operations. Among the incidents that general liability insurance can provide coverage for are:

• Physical/bodily injury
• Physical damage to your property or rented premises
• The cost of lawsuits
• Medical payments
• Advertising injury

Without this coverage, the business would have to pay out of its own pocket for any claims made in these areas. A single accident on your business’s premises might cost so much that it could sink your business. In some cases, your clients may require you to carry a certain amount of general liability coverage. Consider general liability as a form of corporation or LLC business insurance.

Liability Insurance for an LLC

If you’re thinking to yourself, “What insurance do I need for my LLC,” then general liability is it. LLCs are known for their liability protection, but getting additional coverage is a safe bet. Liability insurance for an LLC should never be ignored, so consider getting it for maximum coverage.

Home-Based Business Insurance

Insurance for an LLC, corporation, or other business type run out of your home is important. If you run your small business from home, you enjoy a level of flexibility that can fuel your entrepreneurial passions. However, don’t make the assumption that your homeowners’ or renters’ insurance covers your business. Your business and your home could both be at risk if you don’t have the appropriate business insurance.

Specifically, your homeowners’ insurance may not cover damage to your:

• Business computer and other technology
• Electronic and physical data
• Equipment used in your business
• Employees
• Home itself

Home-based business insurance can also cover the costs of any lawsuits brought against your company. You may need home business insurance if clients come to your home office, you have employees working out of your home, or you keep inventory or supplies on the premises.

Professional Liability Insurance

Professional liability insurance protects you against lawsuits and other actions that may be brought against you if you make a mistake in the course of your business, fail to complete services you’ve contracted to do, or give bad professional advice that has a negative effect on one of your clients.

What it Protects

Professional liability insurance protects companies, especially those providing professional services, against claims of negligence, oversights, or inadequate work. Professional liability insurance covers legal and court costs, out-of-court settlements, and any judgments against your business in court.

Who Needs It

You need professional liability insurance if you’re a consultant, an accountant, attorney, counselor, doctor, lawyer, event planner, engineer, architect, or real estate agent. You need it if you provide any other type of service where clients might get upset and claim your work didn’t meet their expectations. Your general liability policy won’t protect you against these risks. In some cases, your clients may require you to carry professional liability insurance before entering into a contract with your business.

Commercial Property Insurance

Commercial property insurance protects the building your business owns or rents. It also covers any moveable equipment or property your company owns. Think of it as the business equivalent of homeowner’s insurance you probably carry on your home.

There are some notable exclusions from commercial property insurance, however. In most locations, it may not cover damage caused by floods or earthquakes. If you live in a region vulnerable to those potential disasters, you may want to get separate policies for them. In many cases, you can get commercial property insurance bundled with general liability insurance in what’s often called a business owner’s policy.

Insurance for an LLC, Corporation, or Other Business Type

Different business types need different types of insurance. Corporation and LLC business insurance should never be ignored. We mentioned earlier that LLCs, for example, provide liability for owners, but getting insurance for LLC business is important. LLC insurance for small business is also something to think about to ensure that your company, if it’s small, is protected.

Conclusion

No matter how large or small your business, you need to protect it with the appropriate business insurance. That’s also true regardless of your industry or type of business. Your specific business may need specialized insurance, such as malpractice insurance, coverage for commercial building repairs, or paycheck protection coverage, as well.

As you form your business, ZenBusiness can help. Make insurance a part of your business creation plan, and let us help you get your dream off the ground.