Every small business in Texas should have some form of small business general liability insurance to cover the unexpected. You run your business to make a profit and you do not want to have to pay those profits out for damages if you are sued for some reason or if disaster strikes and takes out a portion of your assets.
One of the biggest problem small business owners report having is choosing the right type of insurance to cover the type of business that they are running. Below you will find the answers to common questions business owners ask to help you choose the right type of small business general liability insurance to suit your business needs.
What is the Purpose of Small Business Insurance?
According to the U.S. Small Business Adminstration (SBA), the purpose of having small business general liability insurance is easy really. You simply transfer a risk that you can afford to avoid a bigger risk that you cannot afford a little further down the line. In simple terms, the money that you pay for a small business liability policy today, can save you from going bankrupt if you are sued or disaster strikes even years down the line.
Who Should I Consult When Choosing a Policy?
Of course, a lawyer should look over any policies before you sign on the dotted line and your accountant should let you know what you can and cannot afford to purchase. However, you will also need to find a quality Texas insurance agent, one that is well versed in general liability coverage and other types of coverage, as well.
This insurance policy is not only important to you, it is important to the other people you are in business with, as well.
For example, if you lease the place that you have set up shop in, the property owner may very well require that you have commercial liability insurance policies in place to cover you and him if a disaster should happen.
This type of insurance will cover you and the property owner from everything to civic uprisings to smoke and natural disasters. You should talk to your insurance agent to be sure of what all is covered in any insurance policies you decide to take out.
What Risks Should be Covered?
Your property insurance should cover a wide variety of scenarios. A few of them are listed for you below.
- Your buildings should be insured if you own them yourself; however, if you lease the buildings, then the property owner should cover your building, not the contents of the building but the building itself.
- Your personal business property includes things like computers, chairs, desks, and personal office supplies. This should be covered under a separate policy that you obtain yourself. The property owner is not required to have this for you if you lease your property for your business from him or her.
- Business owner disability insurance coverage protects you from loss of income due to an accident or injury.
- Earthquakes and other disasters
- In addition, flood insurance if it is available in your area, you should check with your insurance agent on this one, because it may be covered under a separate policy instead.
This is an all-risk policy and can be structured to cover anything you want within the policy itself, your insurance agent can help you with the policy and get you what you need.
Texas Liability Insurance
This type of general liability policy is designed to cover a third party in the event that they are hurt while in your business. The following should be covered under a policy that you buy.
- Personal injury
- Advertising injury
- Fire legal liability, oftentimes, this insurance is mandatory if you lease the property that you are using for your business.
- Completed products and operations
- Medical expenses
- Medical payments
- You should also get general liability for your premises. For example, someone tripping over the corner of the carpet in your shop would be covered under this type of insurance.
You will need to talk to your insurance agent, finding out exactly what will be included in any liability insurance policy you decide to take out. You should think carefully and choose the policy that best suits your business needs, do not let a pushy agent sell you something that you will never need. You do, however, want to be covered for anything when you own your own business.
Set Your Budget
Just like any other form of business on the market today, insurance has different prices and different policies. You should get together with your accountant and decide what type of insurance you need and then set a budget that determines how much you can afford as well. Once you and your accountant have come to an agreement, that is when you will want to find an insurance agent to help you choose the right policies for you, keeping your budget in mind.
Do Your Research
You will not necessarily want to go with the first insurance agent that you come across, as they all have different prices for a wide variety of policies. Take your time, do your research, and find the best possible price for you and your business needs.
These are just a few tips to help you get the right type of liability insurance for your small business. From doing your research to setting your budget with your accountant, you will need to take your time and let your agent help you choose the best Texas small business insurance that will work the best for you and your small business needs.
For more information or for a quote please visit our commercial business insurance page at http://davisia.com/business-insurance/ or call Ronnie Davis 254-857-8800 for a free consult.