From the first day of your small business being open, you will run into many difficulties. Many of these challenges can be overcome with hard work and determination. You are green in a sense and knowledge to the finer details is not yet known. This is why you should plan on being safe than sorry for if and when you encounter a serious legal challenge. It’s not easier than ever to sue a business for even something that would have been considered minor and unwinnable in court just a couple of decades ago. Thankfully, there are several options that entrepreneurs and small business owners have at their disposal.
This is a contributed post. Please refer to my disclosure for more information.
Errors and omissions
Perhaps the most common form of being sued is for negligence. Whether it be for a partner, a client or a customer, products and services can do go wrong with potentially harmful results. Even if an injury is not intentional, the damages that can be proved against you in court might lead you to be charged with negligence. However, with professional liability insurance (E&O) you don’t have to pay for mistakes that were not made on purpose or for the sake of cutting corners. Every industry has its own standards however as negligence in the food industry is not the same as negligence in the car industry. There’s not blanket policy so you need to do research to find one that suits your business needs.
For your equipment
Just as your provide a professional service to your clients and customers, so should the companies who you buy from. Equipment is one of the biggest concerns for any business owner. You need to know the things you use on a daily basis are going to function properly and if they do malfunction or break, they can be quickly replaced. Consider Farm Machinery Insurance, if you were a farmer you would want this kind of insurance for your tractors, combine harvesters, trucks and much more. The challenges of your job are always going to put pressure on your equipment, so being ready for if and when they stop working is prudent. This way you never have to halt business for too long.
In case of a meltdown
If you own your own business space, you know that it’s precious. It’s a little corner on earth where you can work towards your goals and not be disturbed by the outside world. Whether you own or lease a property, commercial property insurance is a must. No doubt you pay a lot renting an office or building like a warehouse out every month, or perhaps you paid upfront in one large lump sum. Not taking out an insurance policy on the property is a big risk. If a random fire were to burn your place down, this could be the end of your business as a whole. The insurance allows you to recoup the losses and with that money you can always start again from where you left off.
Protect yourself with a negligence insurance policy. This is perhaps the most important kind that you will need. Then protect your equipment and property where you do business. All three of these policies allow you to keep your head above water as a business owner.