▪ Health. Many businesses provide health insurance as part of their overall employee benefit program. The cost of health insurance continues to rise and you may want to consider having employees pay some part of that cost. If you have a small business with only a few employees, you may want to consider a group plan to cover employees and your family. By being part of a group and having employees pay part of their costs, you may find it is not much more expensive than getting personal health coverage.
▪ Property. Just about every business should have insurance to cover loss or damage to property, inventory or equipment. Premiums vary according to the type of property, coverage limits and what you insure against. If you have electronic equipment such as computers, be sure to investigate how your policy works in case of damage to the files (i.e., due to power outages or surges) as well as damage to the actual equipment.
▪ Business interruption. You may want to investigate insurance that would provide benefits if you were no longer able to conduct business in your usual fashion — for example, if you could not occupy your location following a disaster.
▪ Liability. This insurance can cover damages you must pay as a result of your actions or negligence, or if someone is injured while at your business. Everyone has heard of the large damage awards being made when a customer slips and falls because the business did not melt the ice in front of the door.
▪ Workers’ compensation. This insurance provides coverage for medical and related costs for accidental injuries suffered by employees at your workplace. The amount of coverage required varies by state.
▪ Auto. If you use an automobile to conduct business, even if it is your personal one, you may be required to have a commercial auto insurance policy. If you are a sole proprietor and use your car, be sure to discuss this with your auto insurance provider.
▪ Umbrella. Umbrella insurance fills in the gaps of your other policies or provides additional coverage once the original policy limits are exceeded. This can be extremely valuable in dealing with large losses.
Most businesses need more than one type of insurance coverage. It’s important to spend some time considering what you need and how the policies can be structured for your business. Managing and growing a business is hard enough without having to worry about not being covered if unforeseen events occur.
This news is provided as a service to you by Marlin Business Services Corp., a nationwide leader in commercial lending solutions for the U.S. small business sector. Marlin’s equipment financing and loan programs are available directly and through third-party vendor programs, including manufacturers, distributors, independent dealers and brokers, to deliver financing and working capital that help build your success.