The average small business has a unique set of challenges that are usually less of a concern for larger companies. Smaller businesses have lower amounts of capital, revenue, and other resources. Profits are often a few years away from the date a new small business opens. Since even one case of litigation can be a serious problem for a small business, any owner is well advised to invest in insurance policies that cover liability, error omission, and property. Error Omission Insurance
Injuries on a small business’s property usually result in legal claims for compensation. Even with safety procedures and standards, accidents can still happen. A good liability insurance plan can cover expensive medical costs without a financial loss to the business owner.
Human errors that result in financial costs can also result in lawsuits against a small business. An error omission policy will cover a good deal of the legal costs just in case litigation should happen. The monthly cost of the insurance premium is much more manageable than potentially large damage payments.
A property insurance policy covers losses of a business’s physical building and most contents inside it. Damage from fires or natural disasters can cost a great deal, and this kind of insurance relieves much of the financial burden.
Liability insurance, error omission insurance, and property insurance are the three highly recommended type of insurance for a small business. They are often required by law in many areas as well. The investment in monthly payments is well worth the return on investment.