Happy #BusinessTipTuesday! On June 28th, 2018 it is National Insurance Awareness Day and this day was created to review your insurance coverage. When starting a business, owners may not know where to begin when it comes to what exactly you need in regards to insurance for your business. As well, maybe your business is running and your insurance needs to be reassessed.
When it comes to starting a business, looking at insurance can be an overwhelming topic. What insurance is necessary? What are the rules and regulations? Are there exceptions and if so what are they? These are just a few questions that may come to mind and here at the University of Scranton Small Business Development Center (SBDC), we can help with these questions and research. Here are some forms of insurance to consider:
- General Liability Insurance offers an overall insurance that pays for liable damage up to the policy limits, as well as potential legal or medical fees. This is usually sold as a catch-all with numerous add-ons that tailor to your business and its degree of risk.
- Property Insurance covers more than just the building or physical structure, it includes furnishings, inventory, raw materials, machinery, computers and other items vital to business operations. As well, dependent upon the policy there may be coverage for other events such as equipment breakdown or debris removal after a fire or a destructive event. *Important reminder for those running a business out of their home: Home Owners’ Insurance does not always cover all aspects of the business.
- Professional Liability Insurance (also known as Errors & Omission Insurance) protects a business against negligence claims due to errors or failure to perform. This type of insurance is recommended to service businesses.
- Product Liability Insuranceis a must in the case of manufacturing, distributing, and retail products. This will protect against any monetary damage suffered as a result of a flawed product that results in harm or injury. As well, this type of insurance can be tailored to a specific type of product.
- Workers’ Compensation Insuranceis required once the first employee has been hired. This coversmedical care and replaces a portion of lost wages for an employee who is injured in the course of employment, as well as death benefits as a result of work with the business. This is regardless of who was at fault for the injury.
- Vehicle Insurance is needed if the business requires use of a car; in the case of using your personal car, typically personal car insurance applies. This insurance protects in case of an accident, and specifically in terms of a third party injury.
These are just a few types of insurance that you should be on the lookout for when you are starting your small business. Now, if you are a business up and running National Insurance Day is the perfect time to reevaluate the business insurance you currently have. Check to make sure your policies cover all aspects of your business and that you are getting a good deal. By reviewing your insurance, you are continually protecting yourself and your business, which is an important part of insuring a long life for your small business.
The University of Scranton SBDC is here to help with all aspects of your business. If you need help when opening your business or something along the way, reach out to us. Our website, www.scrantonsbdc.com, has more information about the services we provide.
The University of Scranton
Small Business Development Center
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