For those seeking small business insurance, it is crucial to determine the particular risks and liabilities facing your business, given its products and services. Depending on the insurance provider, small business insurance can mean coverage for any number of risks facing a small business owner. Thus, coverage options can include general liability, product liability, and professional liability.
General liability insurance is a vital component of any small business insurance policy. This coverage can protect a small business from certain risks that might otherwise cost the business dearly. Such liabilities can include workplace injury, commercial or private property damage, and other costly accidents.
Product liability insurance protects businesses from product loss or damage. This risk exists during the manufacture, storage, distribution, and retail of a product, though for certain goods the risk is higher than for others.
Professional liability insurance is most important for small businesses that offer services to customers. This coverage mitigates the liability a business can face due to negligence or errors in the provision of these services, such as malpractice suits.
Insurance providers offering small business insurance can include general liability, product liability, and professional liability within their insurance package. Selecting the ideal policy for your needs should come down to taking stock of the particular liabilities of your business and identifying the coverage that best mitigates these risks.
Photo Credit: Sebastiaan ter Burg