Finding the right small business insurance for your needs can be overwhelming and costly. The following is a brief description of the various types of small business insurance policies.

Liability Insurance

Liability insurance protects you from lawsuits or liabilities filed by customers or employees. If a customer slips and falls in your place of business, your insurance policy should cover the damages. If you are ever the target of a frivolous lawsuit, your insurance policy should take care of the legal fees and litigations. Not all policies are created equal, however, so be sure to check the details of any policy that you consider. You should also check for coverage of vehicles for both you and your employees (if applicable) since personal auto insurance does not always cover claims that occur during a business operation.

If you are going to lease a commercial location for your business, your landlord will probably require proof of liability insurance. Since the fees for this insurance vary, it is a good idea to get some quotes early on and build this expense into your budget.

Liability insurance is becoming increasingly more difficult to obtain as frivolous lawsuits increase and the rest of us are penalized. You may even need to provide a business plan to the insurance agent in order to convince the insurer that you are a good bet. For certain industries, liability insurance can be even more complicated or expensive if the chances of an accident happening are higher (if you serve alcohol, for example).

Property Coverage

In the event of a disaster (a water pipe breaks and floods your building) or other property damage, property coverage can protect you from losses. Fixed property insurance should cover the building itself and can also cover the contents such as fixtures and inventory. If you are renting the building, the property owner probably carries some level of insurance and you should ask what is covered in his policy. When in doubt, it is always best to carry your own policy.

Worker’s Compensation Insurance

Many states now require that companies with employees carry worker’s compensation insurance. This type of policy covers damages resulting from employee injuries. It is relatively expensive in some states (like California) so it would be wise to factor this into your plan early. Check the state listings provided in this chapter to find out if your area requires that you carry worker’s comp insurance.

Commercial Auto Insurance

If you have a company vehicle or a business that makes deliveries, you will need a commercial auto policy. These policies can include coverage for collisions, comprehensive, rental cars and towing.

InsuranceFinder.com can help you locate insurance providers in your area for business, medical, home, automotive and other needs. Get a free quote by clicking on the link below:

Get Bonded

All kinds of businesses use surety bonds to effectively insure the work and protect both the customer and provider. A bond can also protect you from dishonest employees. For example, if you own a cleaning business and an employee steals from a client, your bond acts as insurance to cover the amount of loss (up to your maximum policy amount).

To locate a surety bond service in your state, visit: http://www.nasbp.org/bond.cfm

Business Insurance Books

SMALL BUSINESS INSURANCE - LIABILITY - WORKER'S COMP - HEALTH INSURANCE - GET BONDED