Being the owner of a small business requires you to be on top of the logistics of business at all times.  There is not much room for procrastination.  When you see a need, it is important that you tend to it.

Business is extremely uncertain, and there are a million and one reasons why tomorrow might be the day the doors close.  It pays to invest time and money into the most efficient insurance coverage you can possibly find.

In order to make the right decisions regarding business insurance, you have to know a little bit about what you are purchasing.  A miscommunication with insurance matters can cause a whole slew of legal issues.

If you are not sure where to start when it comes to choosing the right insurance coverage for your small business, then you are in luck.  Here is a short overview of a few of the key aspects of understanding all the different types of small business insurance, so you can make the most educated decision possible on your coverage.

General Liability

General liability business insurance is purposed to cover any costs associated with the occasion that someone is injured while visiting your place of business.  It will help to shield your company from any troubling negligence lawsuits, and cover the costs if your business is sued.

Professional Liability

This is the sort of insurance you buy to protect against pesky errors and omissions in paperwork or otherwise.  Some professionals are required to carry professional liability insurance due to the nature of their profession (like physicians).

Business Property

When you purchase a business property policy, you are purchasing insurance for damage done to your company’s place of business.  An “all risks” policy covers several different sources of damage, and a “named peril” policy is for specific coverage against a specific source of danger like flooding.

Business Vehicle

You purchase business vehicle insurance to cover any automobile issues the company may encounter.  If you have vehicles that serve a specific purpose for your business, it is good to acquire specific business vehicle insurance.

Business Interruption Insurance

When something happens that causes your business to uncontrollably be relocated or closed for any amount of time, you need business interruption insurance.  Business interruption insurance policies will cover the loss of income and cash flow while your equipment is repaired.  It will cover up to a year of loss reimbursement.

Business Owner’s Policy

When you do not want to spend quite as much on insurance, but still want a broad range of coverage, a BOP (business owner’s policy) will do the trick.  You can usually choose to bundle a few different types of coverage into one policy and payment.  This is typically a good choice for beginning small business owners.