Basic Principles of Small Business Insurance

Setting up insurance for a small business can be a very complicated task that may require a lot of planning and thought.

Most types of insurance are not like small business insurance. If you want to insure your home or car, you can point to something you can see and there are certain risks you can insure against and figure out how likely they are.

Due to the nature of a small business, there are a lot of factors that can change the type of risk involved. Once the risks are known, there are also more options, such as getting insurance, self-insurance, or taking the risk yourself.

The first thing that needs to be clear is what a small business is. This is important because many numbers are thrown around that aren’t always accurate. This is because different government and state agencies like to put things into groups. For example, a small business is one that employs less than 500 people, or less than 1000 people, etc. In reality, a small business can be as small as one person working from home or as big as several thousand people.

With the rise of the internet and the ability to work from home as a full-time or part-time worker for a business or as a self-employed person, this has changed a lot in recent years.

Many small businesses no longer need a physical office because they can work from anywhere in a virtual office. This is important because, as most people don’t realise, if you run a small business out of your home, it can have a direct effect on your regular home, contents, or car insurance.

If you work from home, you should tell the insurance company that covers your house or car. They might be fine with it or they might put limits on it, in which case you’d have to get insurance from somewhere else. In any case, you need to tell them, because if something happened and you didn’t tell them, it could mean that your current policies don’t apply anymore.

Before you can think about other kinds of insurance or risk management, you have to do this first. If you don’t work from home, there’s a good chance you either rent or own the place where you do your work, and you might even hire other people.

If that’s the case, you need to think about a number of insurance issues, such as property insurance, car or car fleet insurance, and, perhaps most importantly, your legal and moral obligations to your employees.