If you have invested time and money into your business, you’ll no doubt want to make sure that it’s safeguarded. If you have a fair bit of emergency cash, it is probably best to go with a higher deductible (the amount of money you pay before your insurance policy kicks in). Yet surprisingly few small business owners have access to tax and accounting advice and guidance from a professional.
Your business can change rapidly, especially in the first few years and insurance needs change with it. Keep your program up to date by calling in your agent and reviewing your coverage. Ensure existing personal insurance coverage includes business-related activities and add riders as necessary or obtain additional coverage.
Business owners providing services should consider having professional liability insurance (also known as errors and omissions insurance). Some insurers will lump property and casualty insurance together and refer to the coverage as property and casualty insurance.
Here’s a simple test to know if you need disability insurance: If losing your pay check for at least three months would ruin you financially, do what’s necessary to buy a disability policy. If that partner dies, and the business has planned properly, the proceeds of the policy can be used by the business to buy out the share of the decedent’s partnership interest from the estate.
After the SIR is consumed, then the insurance carrier is brought in to handle the remaining amounts of the claim. The company provides the auto insurance for cars and other vehicles that may be used for the material transfer during the business. With small business insurance, you can remain focused on your company’s bottom line — even when the unexpected happens.