As a child, this writer asked her parents to purchase life insurance for her. Why? Because I mistakenly believed that having life insurance meant I was ensuring I would live forever (imagine my dismay when they answered “no). Knowing that insurance won’t prevent tragedies or inconveniences but can soften the blow if they occur can be comforting. However, as a small business owner, it can be difficult to decide what kind of insurance would be the wisest investment. According to Mike Flanagan, owner of Flanagan and Associates Insurance Agency in Dublin, Ohio, types of insurance a business owner should consider purchasing include:
- General liability: protects company assets in the event of a general liability lawsuit. Mandatory for landlords.
- Property insurance: protects assets of a company in the event of property loss
- Professional malpractice: protects assets of a business in case professional negligence has been inflicted against a client
Stephen Brubaker, a second generation insurance salesman in Bexley, Ohio says having the right kinds of insurance coverage “can safeguard a business from common risks.”
Beyond insuring property located within a brick and mortar location, if a small business owns cars, delivery trucks or even boats, for example, it’s imperative they are properly insured too, he says.
Standard property insurance protects assets at the business’s address. But, if boats or other water vehicles are intrinsic to the company’s goods or services, inland marine insurance is imperative, says Brubaker.
For entities such as banks, construction companies or manufacturers, additional coverage options are available. Those include:
- Bailee’s customer: For instances when customers leave property in your care, such as leaving a car for repair
- Builder’s risk: Protects structures and materials during new construction projects or renovations
- Commercial computer: provides protection for servers and computers, including laptops
In addition to these coverages, business owners need to ponder a premium payment they can afford, along with a deductible they are comfortable with. And, says Flanagan, it’s imperative not to discount the strength of the insurance company being considered. It should have a healthy financial background with a strong history of paying claims in a timely and professional manner.
Both longtime insurance professionals agree that on top of all the other matters to consider when selecting insurance for your company, it is important not to overlook the human factor. “Select an agent who can handle servicing and answer any questions you may have,” says Brubaker.
Tami Kamin Meyer is an Ohio attorney and writer. She tweets at @girlwithapen.
