Below is an article from State Farm Simple Insights® about protecting your small business’ financial future.
These 6 pieces can help you manage the potential successes and possible pitfalls of running your own company.
Whether you’re working a side gig or employing hundreds, you’re investing valuable time and expertise in your small business. And while you’re rightly focusing on your goals, you should also consider what you’ll lose if you’re hacked, injured, sued or faced with any number of other business financial realities.
A business financial checklist can be a great starting place to figure out options to help you save and protect your financial future. Here are some ideas to get started.
Individual Health Insurance
What it does: In qualifying states, it provides the essential benefits required under the Affordable Care Act. You might also qualify for supplemental insurance to help pay for things not covered by your primary health insurance policy, such as deductibles, private duty nurse fees, extra transportation and unexpected child care.
Who it may help: Everyone, especially those who aren’t covered through another employer or group.
Disability
AKA: Short-term and long-term disability insurance.
What it does: Long-term disability covers some of your income to help pay bills, mortgage payments or rent, groceries and car payments, if you become disabled due to an injury or illness.
Who it may help: Everyone.
Estate Planning
What it does: This conserves and distributes property before and after your death. Among its goals: provide cash payment for estate expenses; provide income to your family members; provide for the disposition of a business at death; distribute assets to family members and other heirs in a tax-efficient manner; and aid in financial planning for an individual with special needs.
Who it may help: Everyone.
Life insurance
What it does: It pays taxes and other transfer expenses, satisfies debt and provides income to named beneficiaries when you pass away.
Related losses you can cover: Business Life financial products such as the Buy-Sell Agreement and Key Employee Insurance can help ensure business continuity if something happens to you or a key employee.
Who it may help: Everyone.
Professional Liability
AKA: Malpractice and errors and omissions insurance.
What it does: It protects your business and personal assets in the event of covered claims or lawsuits claiming negligence or failure to perform professional services.
Who it may help: Businesses that provide services, advice or guidance, such as accountants, ad agencies, appraisers, bookkeepers, brokers, doctors, engineers, event planners, barbers, beauticians, dentists, financial planners, insurance agents, lawyers and writers.
Business Property and Contents
AKA: In-home business endorsements insurance.
What it does: This covers your building and other structures where you work or store business property, such as furniture, computers, tools and equipment that could be stolen or lost in a fire or covered peril. If you work from home, a business policy can cover property that isn’t covered under your personal insurance. You can also purchase coverage for a business vehicle, mobile equipment and tools.
Who it may help: Distributors, restaurateurs, landlords, artisan contractors, contractors and a range of nonprofit and for-profit businesses, both in-home and out-of-home.
