Most businesses start small and there is no limit how big they can get. A corner store can turn into a national grocery chain and there are examples of it. Many people have great ideas or products and can start in the corner of high street. These people may not be entrepreneur and just following their dreams. They may not know many things about their businesses like accounting, banking and insurance. This may not be a problem at the start and they can learn in time to deal with that aspects of their ventures.
One of the first things you need to think about is insuring your business. It is granted that you may not have many machinery, equipment, fixtures, fittings and stock at the start and think that you don’t need insurance coverage. This would be a wrong approach as you have customers and you need to worry about liabilities.
You may actually have to buy coverage if you employ anybody. Most states and countries require companies of any size to have employer liabilities insurance as soon as they start hiring people. So, you may have to start think about insuring your business properly since you will need to be buying a policy anyway.
Usually, employers liability cover comes with public liability. They are sold together or the price of buying them separately doesn’t make sense. So, you buy liabilities cover in one go. This pay for any claims against you brought by injured employees or customers. It could include things like food poisoning if you are running a restaurant or a cafe. It would cover the complaints relating to your business.
You can find commercial combined policies in most states and from most firms these days. These policies are specially designed to insure small companies. They include your liabilities as discussed above, fixtures, fittings and any cash in the premises. So, if anything happens to your business you are likely to be covered by these policies. This could be a theft, fire and flood damages and broken shop windows.
Most policies would include loss of business cover as well. For example, you may have a serious flooding because of flood waters getting into your shop or flooding from upstairs apartments or premises. You may have to close your business for a while until the shop is fitted and it is likely to be with insurance money.
What are you going to do in the meantime as this is your main source of income and you have rent and other utilities and taxes to pay? Your policy should normally cover payment of these expenses and the money you would have earned if your shop was open. They will be able to work it out quickly for you.
You don’t get to be paid the turnover but the payment would be based on profit margins. If you have several years of tax statements and accounts it would be easy to calculate this amount. So, you may not have thought much of a business insurance policy but they provide extensive coverage for it and ensure its continuity.