Insurance Basics for the Online Small Business Owner

You may be considering business insurance if you’re a new owner/sole employee of a small online enterprise. Believe it or not, even the smallest of businesses should consider coverage simply because any enterprise is liable to hazards, material or not. Problems arise at any business. You could be injured at home (on the job). Your modest home-run operation can be sued just as easily as if you were running a multinational corporation.

Please review the following guidelines and get proactive on an insurance plan for your small business.

TYPES OF INSURANCE FOR SMALL ONLINE BUSINESSES

There are at least four types of insurance coverage to consider with any small business, online or not: general liability, product liability, professional liability, and commercial property.

1. General liability covers the business against claims that might require you to pay fees or enter a lawsuit.
2. Product liability only applies to businesses that manufacture products. This type of insurance protects against potential issues relating to the use of that product: defective products or products that people claim are dissatisfying.
3. Professional liability guards against claims of malpractice and carelessness in the services you provide.
4. Commercial property insurance protects against potential damages to any property in items that you consider part of the business. If you’re running your online small business from your home, you might consider your computer, printing equipment, and office furniture property belonging to your business. With property insurance coverage, you can choose to cover your properties from a wide range of general hazards, or apply for coverage specific to certain hazards like flooding or fire damage.

Certainly there are other types of insurance coverage for a business, but your advantage as the owner of a small business is that you don’t have to consider them all. If you’re the only employee in your enterprise as is often the case with small online businesses—you may not have to purchase, for example, any type workers compensation insurance, because you don’t have any workers. Also bear in mind that residential insurance policies won’t necessarily cover the business run in your home. However, for an extra premium your home insurance provider may extend certain protection to your business.

KNOW YOUR BUSINESS INSURANCE PROVIDER WELL

Thoroughly research trusted business insurance providers so you can get the best deal on your premium. Sites like Business Insurance Now or Tech Insurance list a number of providers (with their rates) for you to browse based on your specific criteria. Providers like Farmers Insurance offer customizable business insurance models, giving you the power to create an insurance package unique to your enterprise.

Look through plans and packages from several providers before making your choice. Try two balance low priced premiums with coverage that actually works for your business—a cheap insurance plan does not always mean a smart one.

Photo Credit: SavaTheAggie

Carol Wilson writes for business insurance reviews. She contributes articles about a variety of marketing, business, stock market, small business topics. She can be contacted at: wilson.carol24 at gmail dot com.

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