How To: Get Small Business Insurance
Every business needs a general insurance policy to be protected from common liabilities.
General liability insurance protects the insured in the event he or she is sued for claims that come within the coverage of the insurance policy. Premiums for these policies are based on what type of business you re operating and what your projected revenues are. (When we started, our premium was about $100 per month.)
A General Liability Policy Covers:
- Loss of business property (e.g. furniture, equipment, etc.). Our office got burglarized shortly after we hung our shingle, and we were able to make a claim to replace the items that were stolen with money from our general liability policy.
- Losses from litigation (including legal fees). If you get sued for something, your general liability policy should cover any losses from the suit (including legal defense).
A General Liability Policy Does Not Cover:
Your general liability insurance policy may not cover your biggest liability. Figure out the most likely scenario for which you would get sued and how you can get coverage. Examples:
If you re a professional service company like a law firm, accounting firm or real estate brokerage firm, you could be sued for making an error that cost your client money.
If you re a publisher, online or offline, any suit brought for defamation, trademark infringement or copyright infringement will likely be excluded from your general policy.
You can usually get an Errors and Omissions policy to cover these items. The above examples are just a couple that we re aware of. We strongly recommend talking to a commercial insurance broker to discuss what you need and don t need.