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3 Types Of Business Insurance Small Businesses Should Consider

Owning a small business can involve a lot of hard work and attention to detail. While getting a small business up and running, producing a superior product or service usually takes precedence. However, there are plenty of other details that must also be considered. Business insurance is one of those details. This type of insurance will help ensure that a small business is able to stay up and running or that it can recover from different types of challenges that may occur. Here are three types of business insurance that small business owners should consider.

General Liability

When it comes to owning and operating a business, general liability insurance is a must for any small business owner. This type of insurance covers legal issues due to things such as accidents, negligence, or injuries. General liability insurance protects a small business in case of certain legal disputes that might otherwise hinder the business or make it impossible to continue doing business. The cost varies depending on the size of the small business and what sort of risks are associated with it. Some small businesses may pay as little as $500 a year while others may pay a few thousand.

Product Liability

Selling an in-demand product is a great way to make a small business grow. Whether it's manufactured in-house or just distributed by the business, a small business may be liable for the product's safety. In these cases product liability insurance is a must. The cost of product liability insurance will differ depending on the type of product. Products that could potentially be dangerous, for example knives, will likely carry higher insurance costs than less risky products. The average cost of product liability insurance is around 26 cents per every $100 of retail costs. 

Homeowners Insurance Riders

Many small businesses are run from homes. While a home business can be a great source of income, the business activities conducted within the home may not be covered by homeowners insurance policies. When running a business out of the home, business owners can either add a rider to their homeowners or renters insurance policy or purchase a business owners policy. Adding a rider to a homeowners or renters insurance policy can be low cost and is often the best choice for a single person running a small business out of their home.

Insurance is something that should be considered carefully when running a small business. Small business owners should consider both general liability and product liability policies in order to protect their livelihoods. Small businesses run from home also require insurance coverage. Homeowners insurance may offer riders that can offer more extensive coverage for a home based business. A business owner's policy may also be a good option for a growing home business. For more information, contact a company like Hamsher Insurance.