Small Business Insurance: Do You and Your Subcontractors Need It? Legal Expense Cover
Small Business Insurance: Do You and Your Subcontractors Need It?
Small Business Insurance
Small Business Insurance: Do You and Your Subcontractors Need It?
What Type of Small Business Insurance Do You Need?

Arranging insurance for your business can be a real hassle - especially because there are so many different kinds of cover and it's hard to work out what you really need.

Choosing the right insurance protection is an important decision for any business owner. For example, a break-in, fire or a flood will all have a major impact on you and your business.

By law, all businesses are required to insure against certain kinds of risk, such as public or employee liability and motor insurance for company vehicles.

Most Insurance companies make life easy for you by creating packages of insurance that bring together all the cover a business typically needs dedicated to helping small to medium sized business owners take care of their business insurance needs by offering a range of insurance products that you can buy direct.

You need to check with an accountant or lawyer for specific information, but in this article, you'll learn what small business insurance has worked for our computer consultants and customers in the past.

You should definitely have both a general liability as well as a professional liability policy for your services. That professional liability should have the errors and omissions insurance rider folded into it as part of your small business insurance coverage.

How Much Will It Cost You?

This insurance will range in cost, but $3500 is about average. Typically, small business insurance companies will base your price on your size, in terms of employees, the sales volume you re doing, and how they characterize you by risks.

Take time to carefully explain and look at the categories with your agent before they lump you into something that you re not. A lot of times they might classify you into software developers which could be a very different risk category than network installers or resellers.

Do Your Subcontractors Need Small Business Insurance?

Yes, each of your subcontractors should definitely have general and professional liability and errors and omissions insurance. You should not be covering them. Otherwise what you re doing is probably providing benefits that are more like what you would do for an employee as opposed to a contractor.

What's The Next Step With Your Small Business Insurance?

Talk to your attorney and talk to your insurance agent. If you have an insurance agent that takes care of your property and contents insurance needs, you should definitely sit down and talk with them. You might want to ask this question of your accountant also because they have a relatively similar business model in your same area.

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