Accidents happen when we least expect it.

And while you can't always plan ahead for everything, there are certain steps you can take to minimize potential risks and keep yourself, your family, and your assets safe.

Getting the basics covered, like homeowners and auto insurance is a good start. But there are a number of other areas in your personal finance -- and professional -- lives that need to be protected.

Here's why...

Why It's Important to Be Proactive

At age 34, Jeremy had everything he wanted out of life – a beautiful wife, three healthy children, a nice house, and a flourishing construction business.

One day, Jeremy was driving home from a job when he was sideswiped by an 18-wheeler that had run a red light.

Jeremy’s truck was suddenly overwhelmed by the massive force of the vehicle, and flipped over numerous times. After recovering from the initial shock, he looked down and saw that his legs had been badly injured in the accident.

Still alive, Jeremy was left with two broken legs, months to be spent in a wheelchair, mounting medical bills, and no one to run his business in his absence.

Because of the grueling physical nature of his work, Jeremy was no longer able to do the types of construction jobs that he once excelled in. And customers started leaving as a result.

Once Jeremy had recovered from his physical disability, his business and financial life were still far from normal.

There are a number of stories similar to Jeremy’s, all of which are testimonies to the importance of risk management to protect your retirement savings.

Specifically, here are 5 types of insurance that every small business needs.

The 5 Types of Insurance

1. General Liability Insurance: Every business, no matter the size, needs to be protected from liabilities. General liability insurance will provide your business with financial protection from claims that may be filed against you in the areas of accident, injuries, negligence, and more.

More specific types of insurance that are also worth looking into include product liability insurance and professional liability insurance.

2.Commercial Property Insurance: For many small businesses that operate out of only one facility, any damage resulting in that facility being temporarily or permanently unavailable for use would be absolutely devastating for the business.

In order to protect your business’s property from vandalism, fire, theft, water damage, and more, it is vital to have a commercial property insurance policy in place. Property insurance also protects against lost income, computers, important files, and other business equipment.

3. Commercial Auto Insurance: Commercial auto insurance protects businesses against physical damage and/or bodily injury resulting from any type of accident in which a company vehicle is involved.

In cases which employees drive their own vehicle for business purposes, non-owned auto liability insurance can protect the company from any possible accidents or damage.

4. Worker’s Compensation: In the event of an employee being injured while on the job, worker’s compensation mandates that the employee be given medical benefits and wage replacement while in recovery.

To protect the employer, worker’s compensation policies make it virtually impossible for the injured employee to sue the employer. Each state requires businesses to have a worker’s compensation policy in place for W2 employees.

5. Business Owner’s Policy (BOP): In order to include a range of coverage areas in one policy, many business owners will opt for a Business Owner’s Policy.

BOP’s provide protection from a wide assortment of risks in one complete package. They are typically less expensive than obtaining separate policies in different areas, and can be tailored to fit your business’s specific needs.

As you can see, there are many important insurance plans needs that must be attended to within any business.

These five basic policies provide you with a good head-start to cover most major risks in a sea of conceivable troubles. But make sure you also get professional advice from an insurance agency for a comprehensive risk management plan.

Author's Bio: 

Brad Smith is the editor for the The Doctor's Journal, an online publication that explores financial and marketing tips for today’s progressive physicians.

It’s owned and operated by the Physician’s Disability Insurance Agency, an independent disability insurance agency that serves physicians nationwide.