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[I357]Insurance For Small Businesses

by Your Money & You, You

Not having insurance is risky business. It's an expense that many business owners deem unnecessary, but adequate insurance coverage in times of loss is invaluable. As a small business owner, only you can decide what type of insurance coverage is best for your business. Take stock of the physical and personal property that is essential, and protect your assets with a policy that matches your business's needs.

Fire, theft, and other emergencies and cause costly interruption to your business activity. Protect your physical business assets with a Business Owner's Policy or Property Insurance. Additionally, you may want to consider Worker's Compensation in case employees are injured on the job-check your state's laws regarding this type of insurance.

All business owners should consider General Liability Insurance in the case of injury to a person or to someone's property that occurs at your place of business. Entrepreneurs who work in the service sector should also consider Professional Liability Insurance to protect themselves financially against claims of negligence, errors, omissions, or wrongful acts in the performance of their duties.

All business owners should invest in Health and Disability Insurance-unforeseen medical expenses and cause a serious financial burden. Additionally, entrepreneurs with partnerships and businesses that rely on a key employee should consider purchasing Keyman's Insurance in case that employee becomes unable to work.

Whichever type of insurance coverage you choose be sure that the policy contains all the coverage your business needs.

You can cut down on insurance expenses by avoiding duplicate coverage. Also, use due diligence in evaluating different policies from different insurance providers. It's essential to read the policy and understand it fully before buying and signing any insurance agreement, as the insurance provider can deny claims if certain conditions are not met on the part of the policy holder.

If you're a small business owner who knows little about the legalities involved with running a small business you're not alone. The Small Business Association recommends that small business owners take one if not several legal classes in order to familiarize themselves with potential legal issues. Not knowing where you stand in certain legal matters can leave you at a serious disadvantage. Get to know your rights so you can make smart business decisions.

In today's world of technology, several resources offer up-to-date material on business procedures that directly affect the legitimacy of a company. The following are a list of common mistakes and 'how-to' avoid repeating them.

For most business transactions you want to create and sign a contract. Contracts or service agreements allows you to define what your services or products entail. Service agreements are an important way that you can protect yourself and your business. Don't overlook this important aspect of small businesses.

Start by listing the 'scope' of the service. For instance, cleaning a home would take 2-hours. In those 2-hours, list 'what' service and 'how' long it will take. Include anything that may be a special request. Excluding a portion of the service could be a costly mistake. Drafting a contract takes time, but it is necessary.

As a small business you may or may not have several employees working for you. The termination of an employee is a touchy subject but may be necessary at some point in time. You should be clear on employee termination laws and regulations.

Disgruntled ex employees may threaten to sue you with a wrongful dismissal suit or similar legal action. It is vital that you know your rights and what you can do in this type of situation.

Since labor taxes can be so high many small business owners choose to hire independent contractors. Independent contractors are required by the IRS to claim and file themselves. You may think this makes things much easier on you.

You should know that some jobs are actually considered to be an employee's job regardless if it is done by an independent contractor or not. The IRS has its own definitions that you should be aware of before hiring any independent contractor. Protect yourself and your business and be fully aware of any legal ramifications before making any business decisions.

If you own a small business with someone else you need to know about the legal definitions of your partnership. If you're a sole proprietor this means you own the business yourself and can be held legally responsible for anything to do with your business.

Start a business as a L.L.C. (Limited Liability Corporation) instead. This will eliminate the risk of loosing personal funds due to allegations in a lawsuit.

Intellectual Property Issues ? Even low-tech companies have intellectual proper issues that directly affect the long-term success of the business. Pay close attention to confidentiality and invention assignment agreements, registered trademarks, and copyright notices. Protect the company's trade secrets adequately.

Accounting and record keeping are vital to any company. Failure to do so can get you into serious trouble with the IRS. Keep proper paper and electronic copies of all business transactions.

Experienced Corporate Attorney ? No matter what entity a business operates under, a growing business will face issues that require the service of an experienced attorney. Unfortunately, cost is a huge issue for most small business owners. Corporate attorneys do charge a much larger sum for their services.

In any of the above situations you may find it necessary to contact an experienced corporate attorney. Almost all businesses at some point in time will need the advice or services of a professional. While most attorneys do charge a high fee, there are times when this is necessary.

Without a doubt, a business should run erring on the side of caution. Choosing to operate without the proper knowledge on business laws and business ethics, will lead to disaster. Check with an attorney before pursuing a business and start on the right foot.

Article Source : Pg. 36

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Both Your Money & You & Vlad Ehrsam are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Your Money & You has sinced written about articles on various topics from Interior Design, Credit Cards and Finances. Your Money & You Staff have written a series of finance related articles. For additional information on related topics, visit . Your Money & You's top article generates over 14800 views. to your Favourites.

Vlad Ehrsam has sinced written about articles on various topics from Joint Venture, Brochures and The Internet. About the author: Vlad Ehrsam is the chief writer at , it's one of the webs most up to date Business sites, why not sign up for the free Business news. Vlad Ehrsam's top article generates over 74000 views. to your Favourites.