Your dream is about to come true. You are about to open a small business and become your own boss. To protect your dream, you must do what all successful small businesses do: select the right insurance policy.
Every small business must have two types of insurance, general liability and professional liability insurance. These two coverage types will help ensure your company can weather the difficulties every business faces.
General Liability Insurance
Start with general liability insurance. This protects your business if someone is hurt while on your property. This could be a fall in an icy parking lot or while using equipment supplied by your store.
It also covers you if your business is held responsible for damage to someone else’s property. Imagine owning a painting company and spilling paint on someone’s computer. Liability insurance will help pay that replacement cost.
Professional Liability Insurance
Professional liability insurance protects your company if someone files a claim because your company failed to provide services as agreed or made a mistake that resulted in some kind of harm to the client. This is sometimes referred to as errors and omissions coverage, but check with your agent if this term comes up. Sometimes the two policies can have key differences.
Speak with your agent about other coverages that might help support your company. Many successful small businesses include workers’ comp and other policies in their package.