Single mom entrepreneurs protecting their business

By Belinda Johnson

Single mom entrepreneurs run all types of business – auto shops, equipment transporter firms, restaurants, beauty salons, television stations (think TV One’s Cathy Hughes), cosmetic companies, interior design companies and more. Raising start up money to get their businesses off the ground is hard enough. Many single mom entrepreneurs shelve their pride (forget feeling embarrassed), pick up the phone and ask their parents, siblings and friends to front them hundreds or thousands of dollars so that they can meet their first payrolls and stock and ship early products.

Early on, getting enough liability and property insurance doesn’t always seem like a priority. Let a driver cause an accident while transporting catered food from the restaurant to a client’s headquarters or let a dozen customers have a severe reaction to your cosmetics or interior design chemicals and, just-like-that, getting business insurance becomes priority Number One.

Basic business insurance types are:

General liability insurance – Protection against property damage, slander, injuries and medical costs are types of events that general liability insurance offers protection for.

Product liability insurance – Protects single mom entrepreneurs should a product that they manufacture, sell or ship injure someone or cause damages to someone else’s property. When considering the amount of product liability insurance that their business needs, single mom entrepreneurs should think of all their products, including food and any product that could become defective, etc.

Auto insurance – This one is a must if single mom entrepreneurs rely on autos to operate their business. Examples of these businesses are transporter firms, car sales shops, messenger services, auto rental shops and taxi services.

Business interruption insurance – Personal illness or injury and a natural or human caused disaster are two types of events that could cause single mom entrepreneurs to shut their business down temporarily. Similar to short term disability income, business interruption insurance can keep income coming into your company until the doors open again.

Professional liability insurance – Single mom entrepreneurs who offer consulting, medical, psychological or other types of professional services should get professional liability insurance. It can cover their business should they get sued due to mistakes (also known as errors or omissions) that they or a worker of their causes.

Home based business insurance – Even if they have homeowners or renter’s insurance, single mom entrepreneurs can benefit from adding home based business insurance to their policy.

The amount of insurance needed depends on several factors, including the overall value of the business, outstanding debts, equity and the type of business. In addition to getting sufficient insurance for their businesses, single mom entrepreneurs need enough income to cover their expenses should they experience a personal injury or illness. Examples of this type of insurance are health insurance, personal auto insurance and personal umbrella insurance.

Several companies that offer auto or home insurance also offer life, business and professional liability insurance. By bundling the insurance under a single company, single mom entrepreneurs could save money on their monthly installments.

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Single mom entrepreneurs protecting their business

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