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Know About Small Business Liability Insurance

Every business, whether it is big or small, wants to survive, sustain and make profits. But business of any type or size is unpredictable and may get into losses due to unwanted or unexpected circumstances like natural calamities, fire, theft or other riots. It is very difficult for small businesses to protect their occupation or business if they face adverse situations with their meager budgets. Many small businesses perish as they fail to cover these losses. So, it is very important for businesses to have a risk management system for their business to protect themselves against unforeseen losses.

Insurance, considered as a critical part of the risk management system is the only way for small businesses to protect themselves. Today, there are many types of insurance policies, of which Liability Insurance is considered to be the best one for small businesses as it provides compensation for the fines associated with liability cases.

It covers following risks:
Liability insurance protects a small business from loss or damage to the maximum extent. Business liability insurance options are very useful for businesses as they cover the business property, claims for injuries by employees and visitors, employee compensation and many more. Some of the common types of liability insurance for small businesses and their coverage are explained below in detail.

Business property insurance
Business Property Insurance, as the name itself indicates covers the business property of the small business. Its coverage includes the building or buildings in which you do business, carpeting, curtains, outdoor signs, property of others etc. If you choose a right business insurance property, it covers all the important equipment such as computers, machinery, supplies, stock etc.

Professional indemnity insurance
Professional Indemnity Insurance, also called as Professional Liability Insurance or Errors and Omissions’ liability insurance, is an extremely important consideration for small professional businesses that are in service industry. They are exposed to a wide range of claims that may include areas such as errors, omissions, professional neglect, falsehood, breach of confidentiality etc. This insurance protects businesses from the claims made by clients against the delivery of poor service. This type of insurance is generally purchased by professionals such as a doctors, lawyers, engineers, architects, brokers, financial advisers, accountants, consultants, building contractors, and attorneys etc. who run their own business.

Product insurance
Product insurance or Product Liability Insurance protects the business owners from the lawsuits filed against them for manufacturing or producing defective products. This type of insurance is very useful for small scale manufacturers or importers. This liability insurance protects small businesses in case a person is injured or died using a product manufactured or developed by the business.

Employment practices liability coverage
Employment Practices Liability Insurance covers small businesses against claims by employees or business associates when their legal rights are violated. This insurance policy protects employers against breach of employment contract, deprivation of career opportunity, discrimination, mismanagement of employee benefit plans, negligent evaluation, sexual harassment, wrongful discipline or termination etc.

Excess liability coverage
Excess Liability Insurance, also called as Umbrella Liability Insurance or Commercial umbrella insurance provides additional protection to any of several other policies that a small business might hold. It protects businesses when an accident or similar claim exceeds the amount of their existing liability coverage, which may include medical costs or other claim payments.

Workers’ compensation insurance
When an employee gets injured at the workplace, it is the employer who is responsible for the payment of medical bills. Sometimes these medical bills may run into thousands of dollars, which can be very burdensome for the small business owners to pay. The workers’ compensation insurance kicks in during these kinds of situations. The workers’ compensation policy provides wage replacement, medical, and rehabilitation benefits to the employees who get injured on the job.

Other insurance
Apart from the above mentioned insurance policies, there are many other insurance policies that help small businesses such as:
• Auto Insurance – to cover the company vehicles,
• Health Insurance – to protect employees when they are sick,
• Crime Insurance – to protect business against employee fraud,
• Key Employee Insurance – to protect small business against the loss of their key employee etc.

All businesses may not need the same type of insurance. In order to determine a perfect liability coverage for your business, you need to carefully consider all your needs and risks involved in your business. With a good insurance policy, small business owners can have peace of mind and focus on their business knowing that their business is well protected.

Today’s Digital Business Management


It’s true and obvious that today’s organizational business has actually grown from what we use to know as being analogue into the modern digital business. Here in our business guide, we will be looking into the metamorphosis of global business from analogue to digital, the post-digital era of business, the challenges that various business organizations faced in the pre-digital era, the benefits of digital era of business and why that conglomerates, that company organization needs to be digitalis via internet (if not yet done) for a reliable, accurate, timely, complete, and concise effective business management for butter out put.


During this period, which we might refer to as the dark ages in business, so many businesses were revolving only in one place without having much branches and extension. Branches, even when is there were not effective in terms of quality service delivery, effective business communication and contact outside the territory where it is situated on like what we have every where today. In the western world as we refer to them, this period ended faster than it started compared to what we had in so many African countries during the period of digital business revolution.

In Africa, Nig. Precisely, these analogue business method remained (even in the midst of global digital business consciousness via the internet) not until the early 21st century (of course that was when the country embraced democracy in its 3rd republic) when most business organizations especially banks started digitalis their businesses having seen what it can give to them in terms of quality service delivery, business gain, the cost it can reduce for them and make their work more effective and rewarding.


If I may ask myself or like every other person may have asked, are there challenges that business organizations faced during this pre-digital business era? The humble answer is yes. So many of then was faced by customers (i.e. for banks and other companies), clients (for private businesses) and even staff of these a fore-mentioned business institutions. Remember we are using Africa as our case study and Nigeria as our point of focus. In banks, some customers had laid several complains on how long it had taken to have some money transferred into another branch for withdrawal in another branch, in fact that was not even possible before this times because you can not actually make payment in a branch and withdraw it in another, but everything will be done in the same branch both deposit and withdrawal. This was the bane of so many bank customers and advantage of highway robbers since individuals who are doing inter-state business will have to carry their raw cash all by themselves traveling. So many had fallen victims of this high-way robbery circumstance whereas some had even resulted into the death of the people involved as a result of un-digitalized businesses in the area of banks. For some staff in most banks during that period, the job was very tedious since they will have to carry files from one desk to the other carrying one or two functions. This resulted into many graduates running away from banking jobs as a result of the challenging nature of the job before now. But today, the story is definitely a different one. Graduates even clamor for the job which only but very few get. Banks were not the only business institution that experienced this challenges during this period, organizations like private companies, public liability companies, conglomerates, federal government owned business institutions like customs, immigration, to mention only but a few. In immigration we learn t that It had taken much longer time for an applicant to have his request for an international passport granted than what is obtainable today.


As works for institutions like banks and other business organizations becomes tedious and very challenging, the quest for a better way out and effective business expansion started coming into mind. These led into researchers looking out for a way of giving bail to this quest, and also make money for themselves. So many programmers’ started writing programmers for computers, net-working for computers within and outside organizations started coming in, organizations started using computers in keeping records and international networks (internet) becomes the order of the day. Business institutions, both private and public, federal government business now have their world wide web (WWW) together with their domain name. Video cameras now used to keep the event of things for proper documentations. GSM companies came into the rescue of so many Africa local telecommunication companies that got the revolution earlier than us. Today, with phone and electronic mail (e-mail), one can coordinate his or her business effectively without having to travel.

As we said earlier, it was not till the end of 20th and beginning of 21st century that most of us in Africa grabbed digital business, and as we did, we have been glad we did. Today business is hitch free, stress reduced, more business boost, profit within a short period of time est. Globally today, we can see the effect or rather the benefits of post-digital business era on internet. Internet is now the world global business village center where people come to meet their respective needs. Researches can be done online; people can make reliable friends online and even meet their soul mate and other host of online business. Digital business has done it all. It was amazing to me when my first business article on insurance for beginners was accepted and published on EzineArticles’ high traffic site online, I did not travel to any where to effect this, thanks to digital business.

Today as well, people can trade on foreign exchange (forex) at the comfort of their office and Closest and make huge profit without having to travel or know their broker, thanks to digital business/electronic business.

Now for business organizations that are yet to grab this time saving and reliable business pattern, both in Africa and beyond, you have to stand up to your feet and do it no matter what it takes seeing that it pays more. Like we said earlier in our introduction, it will give you a reliable, accurate, timely, complete and precise result, when you do so.