Business law is a civil law that deals with both the matters of public law and private law. This law also deals with small business companies or individuals. It can also be referred to as commercial law. The law relates to duties, liabilities, legal rights of small businesses and individuals which involves transactions for merchandise, commerce, sales, and trade. They also govern legal prospects like small business insurance (life, fire, accident, and marine), guarantee and indemnity, banking, and partnership.

Types of laws that do have an impact on small businesses

Some handful types of law are:

• Contract law
• Formation of business and governance
• Law of intellectual property
• Law of employment
• Regulatory law

Types of insurances a small business should have

Following insurances will cover mostly all the aspects:

• Insurance of liability
• Cybersecurity insurance
• Workers compensation insurance
• Insurance of property
• Insurance of employers liability

A BOP (Business Owners Policy) is also there which has three basic insurances out of the five that are needed for a small business.

Benefits of having small business insurance

There are many reasons for having small business insurance and those are as follows:

Provide insurance for any natural disaster – If a natural disaster occurs, the property of the business may get affected. At that time the property insurance will cover all your damages like its equipment, buildings, etc. Insurance will also help businesses with the money while their business is shut.

1. The future of the business can’t be predictable – The business can have lots of opportunities for the future but at the same time it can have uncertainties too. Fortune tellers can’t predict the future of business and what difficulty might come in the future. So, to be on the safer side, small businesses should opt for insurance.
2. It also makes certain that business runs evenly – The businesses can’t stop its losses and interruption. So, to ensure it doesn’t get affected by any losses, opting for insurance is the best plan ever.
3. Having a peaceful mind is very important – Business owners don’t get peace of mind thinking about their business risks. So, to prevent the business from those risks, insurance is very important.
4. Insurance also covers body injuries – If an employee of a company is severely injured, the liability falls on the owner. The medical expenses and the compensation amount will be huge for the owner. Insurance will help the owner at that moment.

Conclusion

These business laws are formed for supporting business establishment and management in various economic fields for obtaining profits and growth. Small businesses are very helpful for the development of industries, growth in economic status, employment potential, and service sectors. Most of the small businesses are private and are prominent in limited areas. These private businesses are mainly influenced by their capital investment, employees, and annual sales turnover, etc. When the business is suffering from difficult situations, the insurance will cover the business losses. Insurance doesn’t undo the losses or damages but they do ensure that the business is running evenly after the accident or halts.

Binod Choudhary