Small Business Owners: Do You Carry the Right Kinds of Business Insurance?
Most business owners know that they need property and liability insurance. But what would happen if your place of business suffered an accident that kept you out of business for some time? You could continue to owe salaries and rent while you are trying to get back in business.
The insurance that covers you for these costs is called business-interruption insurance, and many business owners don't realize what a mistake it is not to have it until it is too late. Entrepreneurs need to make sure that they are informed and careful when purchasing insurance, not just buy the insurance required by the terms of their lease.
Before picking out insurance, it is important to pick out a qualified and trustworthy insurance agent. One way to determine which insurance agent to select - ask a trusted fellow business owner with similar needs and risks. Once you have selected a few agents you like, ask them for bids. If you're grossing less than $3 million, you will probably end up with a business owner's policy (BOP), which bundles a set of policies and allows you to add to it as needed.
If you have more than a few employees, there are four policies you can't do without: workers' compensation, property insurance, general liability insurance, and business interruption insurance. To read more about how to make business insurance decisions, visit Buying the Best Insurance for Your Business.
If you are a small or medium business owner, please contact Wood, Atter & Wolf, P.A. for legal counsel.
