A solid financial plan for small businesses is vital, and part of that financial plan should be
insurance. Insurance is essential to preserve small businesses, cover their assets, and safeguard their employees.
Here are some types of insurance coverage a small business should have and why this is critical to your financial
plan.

General Liability

An important part of small business insurance coverage is general liability. This policy covers
businesses for some property damage claims and bodily injury claims. Without a general liability policy, your
business may not have adequate insurance coverage. General liability insurance helps for injuries to someone other
than an employee at your place of business.¹

Commercial Property

Your business equipment and the physical location of your business might be your most significant
assets. Having insurance to repair or replace a building and equipment in the event of damage, fire, theft, or
another catastrophe helps avoid an expensive loss.²

Commercial Auto

Having automobile insurance is critical if your business has any company vehicles, such as
delivery trucks. While it is up to you whether or not you want to have your company’s vehicles covered by collision
insurance, liability coverage is a must. Without liability insurance on your company’s vehicles, your business may
be sued for damages by a third party in the event of a collision.¹

Business Interruption

Another valuable piece of insurance to include in your financial plan is business interruption
insurance. This policy replaces some lost income if your business temporarily shuts down due to certain causes.
Interruptions may result from fire, theft, or other significant damage. The policy’s terms and conditions may
reimburse you for money lost because of damages and downtime, such as lost revenue or relocation
expenses.¹

Workers’ Compensation

If you have employees, you must, by law, have workers’ compensation insurance to help cover their
medical and other expenses for on-the-job injuries. Workers’ compensation insurance covers medical costs and may
cover part of their lost wages due to the injury. For fatalities caused by accidents that happen on the job, the
coverage pays a death benefit to the survivors of the deceased.²

Life Insurance

Small-business owners wear a lot of hats, which makes them invaluable and hard to replace. Having
a life insurance policy for the owners of a small business provides the business with some funds to continue in the
event of an owner’s untimely passing.¹

Small Businesses Are Vulnerable Without Insurance

One of the biggest reasons to include insurance in your small business financial plan is that your
company is vulnerable without it. Major property damage or a lawsuit might bankrupt small businesses if they are not
adequately insured. However, with enough insurance coverage, you may keep your business moving forward even when an
unexpected catastrophe occurs.

Footnotes

¹ Types Of Small Business Insurance, Forbes,
https://www.forbes.com/advisor/business-insurance/types-of-small-business-insurance/

² 26 Types of Insurance Your Small Business Should Consider, Business News
Daily, https://www.businessnewsdaily.com/15781-types-of-business-insurance.html

Important Disclosures

Investment advice offered through Planned Financial Services, a Registered Investment Advisor.

The opinions voiced in this material are for general information only and are not intended to
provide specific advice or recommendations for any insurance product. To determine which product(s) may be
appropriate for you, consult your financial professional.

Guarantees are based on the claims paying ability of the issuing company.

All information is believed to be from reliable sources; however Planned Financial Services makes
no representation as to its completeness or accuracy.

This article was prepared by WriterAccess.

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