Owning a small business means protecting your investment in any and every way possible. While most every small business owner understands the importance of different types of insurance for small businesses, many still dismiss it as unnecessary. While the reasons for dismissal vary, these business owners remain unprotected. Here are a few key indications that it's time for you to start shopping for commercial insurance to protect your business.
You Own or Lease Commercial Property
Beyond the details of the building's square footage and other specs, you're going to need to have a contract in place to protect your company from liability. A commercial property of any kind is a potential liability risk.
For example, if a customer comes in from a snowy lot and slips on a wet tile floor, he or she may sue you to pay for their medical expenses. If you own a repair business and you damage a customer's item, you may have to pay for it. In either case, having liability insurance for your business may save you from footing the bill.
You've Transitioned From Sole Proprietor to Employer
If you've been running the business on your own up to now, hiring your first employee is a major step. Not only does it transition you into an employer's role, it also puts you on the hook for employer taxes and liabilities. You'll be responsible if your employee is injured on the property.
Carrying worker's compensation insurance is essential for protecting your company in cases like this. It provides supplemental payments to replace lost earnings in addition to covering medical bills for your employee's treatment and recovery. You may also want to consider an employer's liability policy. This will protect you in the event that an employee sues your company for negligence.
You're Building a Website
In today's business climate, a website is almost essential. You'll want to be able to maintain a website that's updated frequently with relevant information for your clients. Unfortunately, there's also the risk that something you post could land you in legal trouble. For example, the improper use of a stock photo without proper license could find you facing a copyright violation suit. If a customer feels as though you've misrepresented your services or a product, he or she could also seek legal resolution. Professional liability coverage will help protect you in cases like this.
Understanding the risks that your business can face will help you to protect not only the company, but also yourself. If you have questions, talk with an insurance firm like Hale & Associates Inc today.