If you’re a new small business owner, chances are you may not be aware of the importance of commercial insurance for small business. The fact is, you don’t want to wait until it’s too late to buy insurance; any type of problem that would normally be covered by insurance could destroy your business. Small business owners should take the time to learn what types of coverage they should have, regardless of what type of business they are running.
Premises Liability Coverage: Why it Matters
Most of us seldom consider what might happen if a customer falls down a flight of stairs, falls on a piece of frayed carpeting or takes a spill in a poorly-paved driveway. Premises liability coverage can help cover the cost of medical care when a customer is injured while visiting your place of business. Failure to have this coverage could result in a costly personal injury lawsuit that could bankrupt your business.
General Liability Coverage: Because Mistakes Happen
Most commonly known as errors and omissions coverage, this insurance is important to those who provide a service to clients. For example, if you provide a tax preparation service and you make a mistake on someone’s return, they can sue you for the penalties and additional taxes the IRS imposes. In many cases, your E & O coverage would compensate your client for these losses. Your insurance agent can help you determine if you need E & O coverage and what limits are appropriate based on the services you offer.
Worker’s Compensation Coverage: Know Florida Rules
With the exception of construction companies and agricultural companies, if a business has more than four employees, they must provide worker’s compensation coverage. Construction companies with one employee must provide coverage and agricultural companies with more than six employees must also provide coverage. This insurance is to protect employees who are injured while performing their jobs. Make sure your insurance agent knows about all employees, partners and others involved in the day-to-day operations of your business.
Property Insurance: Protect Your Assets
Property insurance can help you recover from a fire or break-in. However, there are many natural disasters such as floods or storms that can wreak havoc on your business equipment and inventory. Natural disasters often require a rider if you are going to be covered. Talk to your insurance agent about what equipment you have, what type of property you are doing business out of, where the property is located and what your inventory is on a regular basis. Only with this information can your agent help you decide what coverage is right for you.
Other Insurance: Which Policies May be Beneficial
When you are the sole proprietor of a business or you have a family-owned business, life insurance may be important. There are various types of policies available including basic life insurance and key-man life insurance. Key man policies are generally used to cover management-level employees who bring a certain expertise to the table and without whom the company could falter.
Some business owners may also benefit from business interruption policies. These policies are especially important after hurricanes and other major natural disasters to cover the loss of income a business would suffer from being unable to operate on their normal schedule. It is important to note these are not stand-alone policies; instead this coverage is offered as an add-on to other liability and property coverage that your business may carry.
If you are just starting a small business in Florida or you have an existing business and are uncertain if you have the right coverage, contact Oyer, Macoviak and Associates and schedule an appointment at our Boynton Beach location with one of our team members. We’ll be happy to review your small business insurance needs.
Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953. Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.