Don't Think That You DON'T Need Insurance For Your Small Business

One of the most neglected aspects of small business ownership is Risk Management. And the easiest way to manage risk is through insurance

Boiled down to its simplest terms for a small business; insurance is value paid to protect against the loss of a much greater value.

When a small business is on a tight budget, owners consider “getting by” without insurance because it is often not required. But disasters can happen: natural or man made. Some people are more tolerant of risk than others, but if you decide to accept certain risk, you, as a small business owner should understand that you are doing just that: Accepting Risk!

FOUR important types of insurance to consider are:

Business Property Insurance
Business Disability Insurance
Business Liability Insurance
Errors and Omissions Insurance



Business Property Insurance is the most commonly held insurance and is acquired to protect your company's assets from hazards, theft, etc.

Business Disability Insurance protects both the business owner and the business in case someone vital to the operation of the business becomes incapacitated. It provides a source of income to the business so that the business does not have to be shuttered while the operation is shut down.

Business Liability Insurance is a safeguard against financial disaster in the course of an unfortunate incident for which the business or one of its agents is responsible. Even if you have an LLC or a corporation, you may not be personally insulated from liability – and the business certainly is not.

Errors and Omissions Insurance is most often used to protect board members and other decision makers within a business structure. Poor decisions on the part of board members may not always result in personal liability, but Errors and Omissions Insurance protects you when it does.

All of these types of insurance and more can be found at the The About.Com web site; “Insurance Needs for Small Business.”

The health of your small business will depend upon a good risk management plan, and insurance should be an important part of that plan.