Insuring Your Small Business


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Obtaining the right kind of insurance for your company is as important as getting enough insurance. When you own a small business you are at risk of losing your business or your personal assets in the event of an unforeseen and detrimental event. You are at risk for lawsuits, theft, theft of customers personal information, fire, auto accidents, and paperwork mistakes. There is insurance to cover most anything that might happen to you and your business, the task is to find out what kind you need.

Typically all small business's need General Liability insurance. As the name states, it will provide standard coverage for your premises and operations. It is up to you what your limits should be, but they should be ample enough to protect you in the worst case scenario. Most businesses will need to go beyond a general policy and get some form of specialty insurance which is specific to their industry. Listed here are some of the available types of insurance:

1. E-commerce - Insures against any loss incurred due to internet intrusions such as hacking for customers personal information.

2. Auto - This is very important if your business owns or utilizes any type of vehicle. It is separate from the General Liability policy.

3. Workers Compensation - If your employee gets injured on the job you will be covered. Some businesses are required by law to have Workers Compensation coverage depending on the number of employees they have. This varies by state so make sure you check with your state government.

4. Errors and Omissions - Anyone who gives advice or performs a professional service needs this coverage.

5. Umbrella - Gives you excess coverage over and above your General Liability Policy. It does not provide excess coverage for Workers Compensation.

Evaluate your risks carefully. Always think of the worst case scenario and plan accordingly. Your business can survive an unfortunate event if you have properly insured it.

Murphy has a BS in Marketing from Florida State University. He is currently the VP of Property/Casualty for General Reinsurance. He is also the co-owner of Northwoods State of Mind.


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