Emerging of the new era of small business
With the struggle and work pressure in the corporate life people are now drifting their passion in opening up small business. These small businesses consist of small number of employees not more than 50 to 100. But these business need to take safety and security measures against their loss and gains and these measures are covered by insurance for small business.
What are the insurance packages for small business?
Insurance for small business acts an important role in covering the success or failure of a small scale business venture. Insurance for small business provides a capital security to the owner of the small business and also to the stakeholders. The different schemes of insurance for small business cover any mishaps, excluding some terms and conditions. These insurance policies offer minimum rate of premiums.
Types of business insurance:
Home based business insurance: Homeowner’s insurance policies do not cover losses in home based business, depending on the risk one needs to add clauses to the policies to cover normal risk.
Professional liability Insurance: These insurance policies are good for protecting small business against errors, malfunctioning and negligence. These policies are prime requirement for handling practices as per the state government in some provinces.
General liability insurance: Coverage due to accident, injuries and claims of negligence are offered to business owners from these schemes. These policies bear the expenses in case of property damage, injury, property damage, health problems and libel.
Product Liability insurance: These insurance policies are for all those small companies that are in business of wholesale items, their manufacturing, distribution and retailing of a product. Product liability insurance protects against financial loss as a result of a defect product that causes injury or bodily harm. The amount of insurance you should purchase depends on the products you sell or manufacture.
Health insurance for small business: In order to keep the productivity improved, small business firms provide good health benefit schemes for their employees to keep all the medical expenses at bay. In a way it is a benefit for the company to keep the employees healthy and reduce the number of absentees.
Property insurance: Property insurance policies come in two basic forms: (1) all-risk policies covering a wide-range of incidents and perils except those noted in the policy; (2) peril-specific policies that cover losses from only those perils listed in the policy. Examples of peril-specific policies include fire, flood and business interruption insurance. All-risk policies generally cover risks faced by the average small business, while peril-specific policies are usually purchased when there is high risk of peril in a certain area. Consult your insurance agent or broker about the type of business property insurance best suited for your small business.
Which Insurance companies provide insurance for small business?
Most of the companies which provide insurance for small business are US based like Wells Fargo and US Small Business Administration. Among Indian companies TATA AIG General insurance company provides multi line package policy to small business in affordable rate of premium.