How to Choose Smart Insurance Coverage for Your Small Business


When starting out a business, one of the most confusing decisions to make is to choose the kind of coverage that will best suit your company’s needs. Naturally, it should be the one that will cover your business from a lot of risks. Contractor insurance is a type of policy that is fitted to cover the needs of a construction business. A special type of this is the contractor all risk insurance, which offers wide coverage for your company. Why should you get insurance? Because no company or business is exempted from liabilities, man-made disasters, or even natural calamities.

So what types of business insurance are available for your small business?

  • Business Disability Insurance – Should you become a victim of disability that would render you unavailable to perform your duties as business owner, then disability insurance can replace your income. According to the records of the Disability Management Sourcebook, disabilities have increased by 400% during the last 25 years. The age bracket generally affected by this are those who are 17-44 years old. Statistically speaking, 1 out of 7 individuals will be disabled before they reach the age of 65.
  • Business Property Insurance – This is a must among insurance policies because its goal is to protect your company’s assets. It can limit liability or cover a lot of potential losses, damages, and even employee embezzlemen
  • Business Liability Insurance – Partnerships and even sole proprietorships puts business owners at a personal risk. Liability insurance will protect you from personal liability should your business undergo bankruptcy or you partner decides to go into some suspicious business deals.
  • Errors and Omissions Insurance – New business owners may not be aware that a lot of small to medium businesses are being sued for professional liability. But there are policies such as this one that protects the business from risks of litigation.

The construction business is one business that has a lot of potential liabilities that comes from a lot of factors. Protecting it is similar to laying out its foundation for success. So plan, scrutinize, and research on the type of construction insurance that will protect you and your business from ruins. Deciding on contractor all risk insurance may the most crucial move you have to do to ensure your business’ survival in this industry.

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