Small Business
and Self-Employed Business Owners Help Center
A 10 Step Guide to Successful Small Business Management
Print out the Step-by-step Checklist
Make your business run better and more profitably
Table of Contents
Ten Building Blocks
to Success:
1. Starting a Business
2. Financing a business
3. Company Name
4. Office Equipment
5. Hiring
6. Business Insurance
7. Advertising
8. Efficiency
9. Pension Plans
10. Succession Plans
Checklist for Success
More Useful Advice:
Resources
Business
Opportunities:
Home-Based
Business
Opportunities
Virtual Call Center
Job Opportunities
Dental Practices:
Buy, Sell, Valuation
Medical
Practices:
Buy, Sell, Valuation
Step 6: Business Insurance
A key to a successful business is choosing the right insurance. Some insurance is mandatory, some are required and some are optional. Obtain an insurance quote from at least three companies.
All of the following insurance policies are important:
Business Insurance coverage should include the following policies:
General Liability & Office Contents (Business Personal
Property)
If you do NOT
have an office then you will only need Liability Insurance
If you do
have an office then purchase a Business Owners Policy (BOP), which
covers both
Liability and office contents (property insurance). The Hartford has a reasonably
priced policies
for both.
They may be the best insurance company for all of you business insurance
policies.
Workers Compensation
(required if you have employees)
Required in
almost all states. Covers employees, if hurt at work, for medical
expenses and lost
wages. For a link to
your home state's Worker's Compensation Commission, go to:
http://www.sba.gov/hotlist/workerscompensation.html
Business Auto
If you use a
vehicle for work, whether it's a truck full of tools and supplies or a
car used to drive to
see clients you must insure the vehicle as a business auto. There are
two ways to insure:
(1)
Business Auto Policy. If you have employees who will drive the
vehicle then you will need
a Business
Auto Policy.
(2)
Personal Auto Policy. If you have no employees who will drive the
vehicle, and the vehicle is
NOT a truck
or heavy duty vehicle, then use your Personal Auto Policy. The cost is
less and the
coverage is
the same. This is highly recommended
as the cost is about one-third to one half the cost
of a Business
Auto Policy. You would tell your car insurance agent to list the vehicle
as business use.
Malpractice or Errors
and Omissions Insurance
Depending on
your occupation you might need this coverage, which protects you in the
event of a
loss such as
bodily injury, death, financial loss suffered by others, etc. due to
your job performance.
Malpractice is generally for those in the medical profession. A
high limit such as $2,000,000 to
$5,000,000 is highly recommended.
Errors and Omissions is generally for those in "white collar"
occupations such as insurance
agents, realtors and attorneys. A limit of $1,000,000 to $3,000,000 is
highly recommended.
Important: Many
occupations such as electricians, plumbers, roofers, siding contractors,
general
contractors, etc. are required to show proof of insurance
before they will be hired. Your insurance agent
can easily fax a Certificate of Insurance to anyone
who needs to be named as a Certificate Holder.
Business Umbrella
Policy
Your business may require higher limits of liability than what your
business owner's policy can
Provide. For instance, your business policy limit is $1,000,000 but
you're required to have
$3,000,000. A Business Umbrella policy will give you that added
protection.
Related Insurance Links to consider:
Move on to Step #7: Advertising.
New
This week:
Virtual Call
Center Jobs
Dental Practices:
Buy, Sell, Valuation
Medical Practices:
Buy, Sell, Valuation
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