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Sunday, May 1, 2016

Finance 7 Insuring your small business

 

As a small business owner, it is critical that you have the proper insurance policies in place to protect both you and your business from any number of potential legal issues.

The types of insurance you may need will generally depend on the nature of your business and the  potential business risks you may be subject to.

 

Below are some common business insurance policies you will need to consider:

 

  • General Liability
  • Property (Building, Equipment, Machinery, Inventory)
  • Business Auto
  • Home Based Business
  • Workers Compensation
  • Business Overhead
  • Commercial Umbrella
  • Errors & Omissions
  • Malpractice
  • Directors & Officers
  • Key Person
  • Customer/Client Data Breach
     
    When it comes to purchasing insurance, the following recommendations are suggested:
     

  • Purchase only from reputable companies with a strong financial rating
  • Shop around to compare prices
  • If possible, you may get a better rate if you bundle policies with the same   company
  • Don't skimp on liability limits
     
    A  few words on automobiles used in business and home-based businesses.
     
    First, if you have a personal automobile insurance policy and use your auto for business, notify your insurance company to be sure your business use is covered.
     
    Second, if you are a home based business, notify your insurance company as most standard homeowners insurance policies do not provide the necessary coverage for your business.
     
    If you fail to disclose this to your insurance company, you may find that you are not covered for the business use of your automobile and home-based business.
     
     
    This  article was written by  Donald M. Scherzi, CPA, CFP, LLC
     
    Mike Lupo, SCORE Counselor
     

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