California Financial Partners

Building Trust Through Expertise & Integrity

  • Company
    • Our Process
      • Components of a Financial Plan
      • Investment Vehicles
      • Your Total Wealth Management Solution
    • Policies
    • Contact
  • Meet the Team
  • Resources
    • LPL Resources
    • LPL Podcasts
    • Outlook Videos
    • CALFP Blog
  • Login

July 6, 2023 By Michael Milam

Small Business and Insurance: What Do You Really Need?

Insuring your business against various forms of financial loss is a common small business strategy. While you have much to attend to with the day-to-day needs of your small business, insurance considerations are equally as important. However, it can be challenging as an entrepreneur to know which types of insurance exist and whether they should become part of the financial considerations for your business. We offer an outline of common types of business insurance below to help with your business planning needs.

General Liability Insurance to Help Protect the Business Owner and Property

This broad coverage helps protect you as a small business owner from financial loss caused by accidents, injuries, and negligence. Two common examples are a customer hurting himself or herself on your business property or accusing your company of false advertising. General liability is one of the most basic and widely purchased type of employer insurance. However, you may wish to consider errors and omissions insurance if you face a higher than usual risk of someone suing your company.1

Commercial Property Insurance

Taking out separate commercial property insurance can provide you with confidence as a small business owner against fire, theft, vandalism, severe weather, and other incidents out of your control that could cause severe damage to your property.1 Business interruption insurance can provide a payout if you’re unable to continue working in your business while your building undergoes repairs.2

Data Breach Insurance

It only takes one unauthorized break-in to your company computer systems to exposes sensitive customer and employee data. To help protect customer and employee needs for privacy, consider data breach insurance if your company routinely deals with sensitive data such as home addresses, social security numbers, income, banking information, and more.

Product Liability Insurance

Not all businesses offer advice on investing and retirement plan or offer personal services. Some strictly manufacture and sell products that could potentially injure a person if the product contains a defect. You would only need to consider this type of business insurance if your company creates or sells products.1

Professional Liability Insurance

Professional liability insurance can be appropriate for businesses and entrepreneurs offering high-level services such as retirement tips, tax planning, legal advice, personal grooming services, real estate agents, and construction work.1 This type of insurance policy can provide your company with additional

financial protection in case a customer or another party sues you. Typically, general liability insurance doesn’t provide coverage for such instances.2

How to Choose the Best Insurance for Your Organization

Several people can help guide you to make appropriate financial preservation decisions. For example, you can ask other professionals in your peer network the types of insurance they purchase and whether they have any recommendations for you. Sitting down with both a lawyer and an accountant can be helpful because each can give you initial recommendations on how to appropriately financially preserve your business as well as provide ongoing guidance.

Corporate Disclaimer:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

LPL Tracking #1-922289

Source

1https://www.freshbooks.com/blog/insurance-for-your-small-business-what-do-you-really-need

2https://www.businessnewsdaily.com/138-determining-small-business-insurance-needs.htm

Filed Under: Mike Milam

Recent Posts

  • Outlook 2025: Pragmatic Optimism
  • 2024 Midyear Outlook: Still Waiting for the Turn
  • High-Net-Worth Retirement Planning: How Social Security Fits In
  • Wealth, Success, and Mental Health: Finding the Balance Between Wealthy and Healthy
  • Employee Stock Ownership Plans for Executives

Categories

  • Edward Johnson
  • Events
  • Mike Milam
  • The Biggest Mistakes in Financial Planning Series
  • Uncategorized

Glendale, CA Office

California Financial Partners, Inc.
700 N. Brand Blvd.
Suite 640
Glendale, California 91203
Tel: 818-550-9955

  • Home
  • Meet the Team
  • Our Process
  • Publications
  • Tools
  • Login
  • Policies
  • Fee Schedule
  • Privacy Policy
  • Disclaimers
  • Contact

California Financial Partners, Inc., A Registered Investment Advisor, is a fee-based comprehensive financial planning organization. Securities and Advisory services offered through LPL Financial. A Registered Investment Advisor. Member FINRA & SIPC. LPL Financial Form CRS.

The LPL Financial Registered Representatives associated with this site are currently registered to discuss and/or transact securities business with residents of the following states:
AZ, CA, CO, DC, FL, GA, HI, IA, ID, IL, IN, KS, KY, MA, MD, ME, MI, MO, MT, NC, NE, NH, NJ, NM, NV, NY, OH, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, WY.
If you are in a state other than those listed, we will acquire the appropriate state license so that we may serve you.

Copyright © California Financial Partners, Inc.