The term “small business” often buzzes in a vacuum for many self-employed and future freelancers.
Business finances: Proper insurance can be so easy
Choose an insurer that has expertise in the “small business” space
Some insurers only insure small businesses on the side. It often happens that the premiums are significantly higher than with comparable insurers who have specialized in this area.
Which insurances are actually relevant for you and your employees?
As a rule, it can be said in general. Business liability insurance is very important for most small businesses regardless of the industry. There are innumerable risks that start-ups can face. Most of these are covered by business liability insurance. Whether you also need professional liability insurance depends on your self-employment.
Benefit from regulations for small businesses
A decisive advantage are the reduced bookkeeping activities. A small business only has to submit an income surplus calculation to the tax office. Elaborate bookkeeping is not necessary.
Of course, small businesses also have disadvantages. On the one hand, small traders cannot freely choose their business name. The prerequisite is that the trade is named with the first and last name of the trader. On the other hand, the legal form can only be selected to a limited extent.
Another disadvantage is liability. As is the case for the self-employed, small businesses are liable for damage caused by third parties with their private assets. This is always the case if you did not insure your business.
Avoid business financial risks with the right insurance coverage
Without the right public liability insurance, the self-employed run a high risk. No matter how big the company is and how many employees work in the company, if there is damage to property or personal injury, high financial costs can arise without insurance. Having the right insurance coverage is extremely important. The very first and most important insurance is business liability insurance. Public liability insurance thus offers an important foundation of security for founders.
Another insurance that is particularly important for consulting professions and service providers is professional liability insurance. As insurance that covers financial losses and consequential financial losses, this insurance gives entrepreneurs backing, for example, in the event of incorrect advice. It is even required by law for some professional groups. This is because such damage can often be extremely costly.