In Part 1 of this series [create a link to blog post Part 1 here], we discussed the necessity of obtaining different types of insurance. Here in Part 2, we continue the discussion and elaborate on further types of business insurance you may need for your small business.
Commercial Property Insurance – This is absolutely essential if your business owns real property and/or any capital equipment. This insurance will provide financial protection of loss due to fire, theft, or other types of damage. Be sure you protect all your company assets with property insurance.
Business Interruption – Even if you don’t own the commercial space where you operate, what happens if there is a fire and you are unable to perform your business functions? Business interruption will help pay for your revenue losses while the property is renovated or rebuilt, or while you look for another suitable location.
Home Business Insurance – If you operate your business out of your home, you may need additional home business insurance that your regular homeowner’s policy doesn’t cover. Check with your insurance agent for details on what you may need.
Employee Insurance – There are many types of insurance required for your employees. Here is the usual list:
- Worker’s Comp – Your state will likely require you to pay worker’s comp insurance on the wages of your employees. This is usually paid to a commercial insurance carrier. Check your state laws for details.
- Unemployment – Unemployment insurance helps pay benefits to workers who are laid off from work. All commercial businesses are required to pay this to their state. Check with your state’s requirements.
- Disability – While income replacement insurance is usually an added benefit to employees, some states actually require that you pay disability insurance to protect employees from lost wages due to injury or sickness. Check with your state’s laws for details.
Key Person Life Insurance – In many small business cases, the business would fail should the founder, CEO, or other important key person should suddenly die. Key Person Life insurance will help a business stay solvent were they to lose an important member of their top executive staff.
Insurance is a necessary evil, but a blessing when the time comes to make a claim. Be sure you review your insurance coverage on an annual basis and talk with an agent to keep your business protected.
