Small businesses may not necessarily be small in size. However, they can be private, or sole proprietorship or partnership enterprises that have few employees and deal with a narrow range of goods and services. The annual revenue is always smaller as compared to the big and large businesses. Nevertheless, these small businesses are at risk which requires insurance cover just like their bigger counterparts. The insurance solution for small business helps the business to keep running its activity no matter the risk or the effect in the market. Small business helps to protect the business properties and the employees. We will explore a few insurance covers that are fundamental for any small business.
Basic insurance covers a small business.
General liability insurance
At work, employees are prone to any form of injury or illness. Similarly, the equipment and the property of the enterprise are at risk of damage or theft. Therefore, a general liability insurance cover is a guarantee to protect your employees and property in case of any damage. This ensures that the business keeps running without incurring any unbudgeted costs. For example, if you have a shopping store and an employee slips and falls while at work causing some injuries, this insurance cover will help in catering for the medical bills. Similarly, if anything happens to your client inside your premises, the general liability cover will cater for any damage. Therefore, this is a basic insurance cover for small businesses in the sector of service provision.
Commercial property insurance
Due to risks such as fire which can be caused by factors such as electricity, it’s good to insure your small business with commercial property insurance which covers the physical part of the business that is the premises, tools, equipment, furniture, and inventory. In case they are damaged, the insurance cover helps to replace them or renew them. This enables the small business to continue with its operation without incurring any cost that could have otherwise stagnate the business due to the loss. Therefore, small businesses should at least have commercial property insurance due to the risks they face at work.
Business income insurance
When small businesses experience losses due to theft and/or fire, they are likely to shut their operations down due to insufficient income. However, with business income insurance coverage, the insurance company compensates the business hence ensuring that it doesn’t necessarily stop its operation.
Workers’ compensation insurance
As a small business, it’s good to ensure your workers for the sake of their welfare due to cases such as illnesses, deaths, disabilities, or any other social activity. The worker’s compensation insurance helps to compensate your workers if anything happens to them.
Commercial auto insurance
Just like any other premises, small businesses may have vehicles they use for business operations. Therefore, commercial auto insurance helps to cover the cases such as accidents. The insurance covers the business car and the employee (driver) who use the business vehicles.
To wrap up, the best solution to keep small businesses growing and operational is to have an insurance cover that will ensure both the physical assets and the employees.