The Small Business Owner’s Guide to Insurance Coverage

May 2, 2019

But what if you overcome these hurdles only to watch as a customer slips and falls in your store and sues you for the resulting medical bills? What if a cybercriminal steals customer credit card information – a crime that could result in lawsuits from angry patrons? These incidents, and a host of other crises, could wipe out your savings and shut down your business.

This is why it’s essential that small business owners invest in the right insurance protection. At a minimum, it must include general business liability and property insurance to protect you financially and help keep your business open.

But that is just the start. Depending on your business, you might need everything from a commercial auto insurance policy to business income insurance to an overall umbrella policy that will protect you from the most expensive lawsuits. If you’re worried that your business isn’t adequately protected, call your insurance agent. He or she can study your business and determine just how much insurance you need.

Here’s a brief look at some of the coverage options small business owners might need to keep their doors open, should the unexpected happen.

Business general liability insurance

All small businesses must invest in general liability insurance. This policy covers any financial damages you suffer if someone is injured while visiting your business and sues you for the resulting medical treatment. It also protects you if your business’s products or services injure customers or make them ill.

For instance, say you are using a ladder to stock cans of paint on a shelf at your business. If a can falls and injures a customer, and the customer sues you and wins, liability insurance would pay for the costs of any medical treatments that customer receives. Or, as another example, consider what …

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Preparing for the Worst: How to Make Sure you Are Ready for Unforeseen Bumps in the Road

April 17, 2019

“Hope for the best and prepare for the worst” — wiser words were never spoken when it comes to maintaining a sustainable business.

As a small business owner, being your own boss has many benefits; you get to call the shots and make all the decisions. But it also comes with a lot of responsibility, and risk management is one of the most important responsibilities you’ll be shouldering.

As you probably know, running a business always involves a certain level of risk. That’s what makes entrepreneurship such a leap of faith. With a little foresight and smart planning, though, you can reduce those risks — or at least create a solid plan for dealing with them in order to minimize the negative effects they may have on your business or your income. Small business risk assessment is an essential part of setting up and running your business, and you should make sure to give it some consideration.

Possible Risks

Some of the risks involved in running a small business include:

Financial risk

No matter how well you plan, there is always a risk that the business won’t run as well as you hoped. You may not be able to find as many clients as you anticipated, or your return on investment may not be as high as you predicted. You might encounter an unforeseen expense that depletes your budget or face issues with cash flow. According to a U.S. Bank study, 82 percent of businesses fail because of cash flow mismanagement

Property loss or damage

Many entrepreneurs need specialized equipment for the work they do, and that equipment can be expensive or hard to replace. No matter how carefully your guard your property, there’s always a chance something will break or get stolen. Another type of property that may …

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