SmallBusinessNewz

Got employees? Your state may require you to pick up workmen's compensation insurance. Lacking it puts your small business at odds with the law.

The Boston Herald said a lot of small businesses don't think about insurance past a small amount of property and liability coverage. Home-based businesses, for example, should not assume homeowners' coverage protects them from business-related accidents.

Industry group the National Association of Insurance Commissioners (NAIC) hosts an information website about coverage that small businesses may need. Called Insure U for Small Business, the site offers tips on various types of coverage.

The group also provides warnings about fake insurance products, through a toll free number listed on the site. They encourage small businesses to shop around for coverage they may need.

Some of the coverages may be new concepts to small business owners. The errors and omissions product probably falls into that list, working similar to malpractice coverage, but for small businesses accused of not fulfilling a client's service.

Another product, employment practices liability insurance, gives the owner some safeguards when bringing in employees. It provides coverage against employee lawsuits for sexual harassment or wrongful termination.

The added expense of extra insurance may not appeal to small business owners, but riding a catastrophe curve and hoping not to fall off isn't the greatest choice either.