Being a small business owner means you have a million and a half decisions to make on a daily basis. Little choices from what paper to order to what HR company to go with can all add up quickly, making your management tasks stressful. One of the biggest decisions small business owners have to make is concerning insurance policies. If you’re just getting your brand off the ground, here are three types of coverage you may want to consider.
General Liability Coverage
The first type of insurance every small business should have is a liability policy. There are two main types of liability insurance- professional and personal liability coverage. Depending on the size of your small business, you may need both types of policies to cover you as you move forward. Professional liability protects you and your employees from business-related mistakes. For instance, if one of your team forgets to include a disclaimer with a service, professional liability coverage will keep you safe from any harmful repercussions.
On the flip side, personal and general liability coverage protects your individual employees and the people who walk into your business. If someone drops a product and injures their foot in your store, a general liability policy will keep your business and employees covered from having to pay the bill. Even if your small business is just getting off the ground, it’s a wise decision to have a general liability policy keeping you covered. You’d rather be safe than sorry when it comes to staying insured.
Worker’s Compensation
The second type of insurance every small business should have is worker’s compensation. Even if you only have a small team of employees working for you, it’s impossible to know if and when an accident will happen. If you don’t have some form of staff insurance policy, you leave yourself and your business open for lawsuits that could cripple your finances. One of the biggest reasons small businesses fail is because of poor financial planning; if there’s an accident that leads to a lawsuit, your brand could that statistic.
Similar to worker’s compensation is health insurance for your staff. This ties in with the benefits package you choose, but picking out a health coverage policy will retroactively keep you safe from any complaints or suits that arise from work-related health complications. For instance, if an employee trips on the office stairs and twists their ankle, the worker’s comp and health insurance policies you have in place will keep your business safe from legal action.
Tech and Digital Policies
Finally, you may want to consider adding some tech and digital policies to your insurance coverage. Whether your small business is in the tech sector or not, you undoubtedly do at least some of your work online. Between company websites, digital marketing, and online management services, there are many ways your business is connected to the internet. Unfortunately, that leaves you susceptible to data leaks and scammers. The last thing you want is sensitive information belonging to either you or your clients getting out, but in the event that it does happen, you want to be prepared.
Taking out a tech insurance policy keeps you and your clients safe from potential data leaks, both from hackers and just poor cybersecurity. Even if there’s a storm and information gets lost or corrupted, your insurance policy will keep you safe from any potential lawsuits down the line. Additionally, tech insurance can help cover the costs to repair damage to your clients and your reputation, such as running PR to smooth things over. Whether or not your business deals primarily in digital information, having some form of tech insurance coverage is a wise decision.
In conclusion, keeping your small business safe doesn’t have to cause a managerial headache. By covering all your bases with good insurance policies, you can prevent detrimental ramifications in the event of an accident down the line, giving your brand a better chance of success.
