As a small business owner, one gets to have their own operation and therefore be one’s own boss. However, managing a business also entails embracing some risks. There are legal structures in place that compel small businesspersons to have some form of insurance. It is necessary to have these to shield your business and your employees. You can also get some tax benefits that are set for small business owners who wish to secure insurance.

Workers compensation insurance:

From a legal analysis, it becomes clear that this type of insurance is mandatory for small businesspeople in most states. Workers compensation insurance in general covers all types of expenses like medical expenses, job displacement costs, or costs from illness and injuries to employees, as well as legal costs where workplace injuries or illness occur.

Health insurance:

Employers with less than 50 full-time employees are permitted to offer but are not mandated to offer health insurance to employees. For employers with more than 50 full-time employees, the provision of health insurance is compulsory. It also makes sense for such small businesspeople who meet the requirements of employing less than 25 full-time workers and paying less than $56000 in wages, to apply for the provisions of the Affordable Care Act. The inclusions in the Act will take care of part of the employees’ premiums and provide additional tax credits in small group insurance.

Business and professional liability or errors and omissions insurance

This is perhaps one of the most necessary covers that a small business must have particularly if the business is within the line of service provision or operates in the advisory business line. A business operator needs professional liability insurance to counter cases where clients with complaints concerning the quality of goods or services provided. This can be anything, from negligence and claims to bad advice or errors that are human or mechanically made. Legal fees for both the business and the employees are also catered for in this cover.

Directors and officers’ liability insurance:

This cover has particularly been developed with a view to safeguarding employees in managerial positions. Directors’ and officers’ liability insurance will shield the reputations and assets of directors and officers of a business in instances where they are liable for unsound management or administration. This is particularly important for technology-based start-ups which entail higher risk during business development especially when establishing unique technologies. This is also because they handle sensitive information or making of what can be regarded as high-risk investments, hence can easily be con by any con artist or an organization that wants to make a quick buck from them.

Disability insurance:

Such kinds of insurance will pay out a fraction of an employee’s salary in the event of their inability to work for a given period of time.

Unemployment insurance:

This cover is mandated by federal law for any employer who pays over $1500 in wages during a quarter, or for business owners who employ at least one person for a span of 20 weeks or more, annually. Unemployment insurance is primarily used to cover employee compensation in the event of layoffs.

While insurance cover for small businesses is legally required, the greatest positive impact it can have beyond the protection of your business, its assets, and people is the ability to attract and keep the best talent. Workers who are appreciated and taken care of tend to remain committed to organizations and work harder at their places of work.

Besides covers that protect employees, every small business must have the following policies in place:

General liability insurance: This cover will safeguard your business from property damage, slander, product liability, and false advertising and cover legal costs involved for anyone who may get injured on your premises.

Cyber liability insurance: This cover protects small businesses from cyber related threats that include ransomware attacks, data breaches and more, cyber liability insurance will cover costs of data restoration, income loss from an attack, operational restoration, and so on.

Property insurance: For your office spaces, warehouses or data centers, this cover will protect the company’s property, physical items, and technology in the case of natural disasters, fires, vandalism, or theft.

Commercial umbrella insurance: This cover extends other primary cover like general liability and is often useful where businesses exceed the general liability cover.

If you want to protect your small business and optimize tax exemptions, and company compliance with legal insurance requirements, please contact us for bespoke services that meet your business’s requirements.