From the day a small business owner begins operations, he or she becomes exposed to certain risks that must be faced. Even before the first customer is served or the first transaction is conducted, it's vital that the proper small business insurance be put in place for the protection of the you, the owner, plus your employees and the business itself.
A single lawsuit or other catastrophic event could take out your small business before it's even had the chance to get off the ground, and if you're held liable for any significant loss it could negatively affect the rest of your life. Fortunately, there's a wide variety of insurance coverage options that offer you protection against the effects of these risks. Buying small business insurance protection should, therefore, be at the top of your to-do list when embarking on your small business enterprise.
What Exactly Do You
Need?
You need property insurance to protect you from losses to your building that are caused by things such as fire, storms or vandalism. If you rent your building, you still need coverage to protect the equipment, stocks and supplies kept in the building in the event that something happens to damage or destroy them.
You also need general liability coverage to protect your interests in case someone, including an employee, becomes injured while on your property. Employees must also be covered by workman's compensation insurance in North Carolina if a business employs three or more employees, full- or part-time. You may also want to consider providing disability coverage to your employees.
How Much Liability
Coverage Should You Have?
Although every small business is different from the next, the rule of thumb for general liability insurance here in NC is between $500,000 and one million. If you're operating a higher risk operation, such as one of the building trades, it's recommended you increase these limits. The same goes for businesses with a high customer interaction rate such as restaurants or retail sales. Even if you're running a small business out of your home you should have business insurance, keeping in mind that renter's or homeowner's insurance typically provides limited coverage for business liability and business losses.
Additional Coverage
Options
In addition to property and liability insurance for your small business, additional optional coverage includes:
- Product liability insurance
- Company
vehicle insurance
- Business interruption insurance
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