5 Types Of Insurance Small Businesses Need

Startups and small business are crucial to a country's economy. Unfortunately, many of these businesses fail.

There are several reasons why a lot of startups and small businesses fold. Business owners can't avoid every business risk, but they can still protect their business and improve its chances of surviving by getting the appropriate insurance policies.

Here are five types of insurance that can help a small business owner like yourself:

1. Business Interruption Insurance

Catastrophic events or unforeseen disasters can cause delays or interruptions to a company's daily operations. This can result in lost income as employees won't be able to work, make sales, or manufacture products. A business interruption insurance can reimburse a company's lost income due to disasters and catastrophes. This insurance is particularly useful for businesses that have a physical location, like a clothing store.

2. Professional Liability Insurance

Also known as Errors and Omissions, this type of  insurance is needed to protect a company against negligence claims because of injuries or harm that comes from errors or a service or product's inability to work. E&O insurance policies are usually customized per company since each industry has different concerns.

3. Property Insurance

This type of insurance is required regardless of whether the company leases or owns the space. Property insurance safeguards equipment, furniture, inventory, and signage in cases of fire, robbery, or storms. But events of mass destruction, like earthquakes and floods, are not typically covered under conventional property insurance. If your business is in an earthquake or flood-prone area, make sure you check with your insurer about securing another policy.

4. Trade Credit Insurance

Businesses that offer services or goods on credit terms invest a percentage of their capital on accounts receivable. A trade credit insurance safeguards a company from bad debt that might damage the business if left unpaid for too long. Also known as debtor insurance, trade indemnity cover, and insolvency insurance, this type of insurance gives small business owners the freedom to concentrate on important things, like securing more capital, approving credit limits, or boosting customer relations.

5. Workers Compensation Insurance

Employers should always secure workers compensation insurance as soon as an employee is hired. This type of insurance covers medical treatments, as well as death or disability benefits in cases when a worker is harmed or fatally injured due to the job. Even companies with low-risk jobs should carry this insurance. Slips, falls and even conditions like carpal tunnel syndrome can be expensive when an employee files a claim.

Small business have a better chance of surviving disasters or lawsuits with the right type of insurance. Owners should coordinate with their insurance company and discuss what policy is best for their kind of business.

The River Valley Insurance Agency, has its clients as their first priority with affordable rates and clever policies. To learn more about how we can help you please contact our agency at (616) 301-9500 or Click Here to request a free quote.