If you own and operate your own small business, you’ll already have plenty of responsibilities and accountability. You’ll want to ensure that everything you do is done right and you’ll want to make sure that you only offer the highest quality services. Should the unforeseen happen such as an error, accident, or an injury, you’ll want to ensure that you have plenty of liability insurance. If you don’t have this, your assets may be in serious jeopardy.

All businesses require insurance. It’s sad, but true, that today, we live in a litigious society that won’t hesitate to sue before they attempt to work things out. If you want to protect your assets, you’re going to have to ensure that you have adequate small business insurance that will cover and protect you and your assets.

It’s far less costly to pay an annual premium of $750 to upwards of $2000 than it is to lose your entire business all because someone sued you and you couldn’t do anything to stop it. You’ll save thousands and you’ll be able to save your business by having adequate small business insurance in place.

There are several different types of small business insurances that you can purchase. Determining which type of insurance to purchase will be dependent on what you need to insure, your type of business and your coverages that you desire.

Even an LLC should have some sort of General Liability Insurance to insure your business . You can be held liable for a variety of things if you’re not properly insured. If there is an injury if you are paying off a loan or debt if you’re not paying your taxes properly, if you’ve damaged someone else’s property or if you’re not following up on something you can wind up owning thousands upon thousands and jeopardizing your business. Never let anyone tell you otherwise, you must protect your assets.

There are several different types of liability insurance to choose from and you’ll want to make sure that you’re choosing the kind that will best suit your needs. The first of these is General Liability Insurance. this type of business insurance is to ensure that your business is protected from injury claims. It also protects against property damages, against advertising claims and is also referred to as Commercial General Liability insurance. Depending on the particular type of business that you’re running, it may be all that is required for your business.

Just like any other insurance policy, it will have a declaration page that outlines the coverages for your policy. It will show the maximum that will be paid out in a liability claim. Your coverages will be dependent on what you insure your business for. If someone sues you for a larger amount, you’re going to be held responsible for all of the amounts over what your general liability policy will cover. Example, if you’re insured for $250,000 and someone sues you for #300,000 then you’ll have to pay out the difference of $50,000. Always ensure that you’re getting enough coverage protection for your specific business.

Professional Liability Insurance is for those who are offering services. You’ll want to consider how much of this you’re going to need to save your business should there be a malpractice suit or if there are any errors or omissions in your services. It may be required legally to carry this additional insurance depending on your particular business.

A good example of this type of insurance would be doctors. Some technical consultants will also require this type of insurance. Always know what you need and make sure that you have adequate coverage.  Product Liability Insurance rounds out the types of business insurance that should be in place. Again, this will be dependent on the type of business that you’re offering. If you have products as well as services you’ll likely need to make sure that you have this type of insurance and are covered in this type of policy.

While a sole proprietorship is an easy business structure, it’s vital to ensure that the person operating it has a full understanding of the types of insurance and what is required to ensure that nothing happens to the business should there be an issue.

There are different types of business liability insurance to choose from and the final choice will be determined by the type of business that you’re running and the risk factors. The higher the risk factor, the higher the insurance policy you will require. While paying out a premium may seem outrageous, if you’re not protecting yourself from a potential lawsuit, you may wind up losing the entire business due to that lawsuit. It’s always worth the extra measure of security to pay for a premium rather than risk losing the business.

One of the largest assets that many small business owners don’t foresee is that their home is their castle. If you’re working out of your home, and wind up in a lawsuit, you are at a huge risk of losing your home.  this could also put your spouse at risk as well as your children. It’s really not worth the risk.

If you’re unsure of what sorts of policy your business requires, talk it over with your insurance broker and get their advice as well as the quotes for the premiums. You can compare premiums from a few different insurance agencies and determine which company has the best deal for the particular kind of insurance your small business is going to require.

Never underestimate, it can be a costly mistake. If you’re unsure of certain coverages, it’s always better to err on the side of oversharing than underinsuring. Calculate the risk factors and make sure that all of your bases are covered. You’ve worked hard for everything that you have and having the right small business insurance can make your life so much more secure and easier. Protecting your assets by having adequate small business insurance makes good sense.

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