Finding the Best Insurance Policy for Your Small Business

Finding the Best Insurance Policy for Your Small Business

Photo by Hillary Ungson on Unsplash

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Business insurance is a vital tool that helps you protect your small business and its assets in the event of property damage, lawsuits, injuries, and other claims that may arise from your work. Business insurance policies come in many shapes and forms, all with the same goal of providing adequate coverage for you and your business. Therefore, it is good to acquire an insurance policy before starting a business. Additionally, it is also prudent to add covers as you expand your service offerings and the number of staff.

Almost all major insurance companies offer business insurance tailored for small businesses, and there are many providers of business insurance policies that it would sometimes seem challenging to use the most suitable one for your business. It is recommended to research to find out which company offers maximum coverage at the best price.

The cost of small business insurance

There is no fixed price to a small business insurance policy. The final premium payment calculated for your company will depend on various factors, including location, the number of employees, the size of your commercial property, the type of service or product you offer, and many more.

Evaluate your needs to obtain the best insurance policy

An insurance policy for small business changes over time. When you add more employees to your roster, add more branches, or expand your service or product offerings, you will need to reassess your insurance needs and add more covers on top of your existing small business insurance policy. It is recommended to evaluate your insurance needs every year to see if your current insurance can provide you with comprehensive protection.

Small business insurance covers

  • General liability insurance. This insurance will cover damages on the third-party properties due to your work. General liability and commercial property insurance are packaged together in most cases and called business owner’s policy insurance. If you operate a one-person company, a business owner’s policy insurance provides enough coverage.
  • Commercial auto insurance. Depending on the state laws where your business operates, you may need to obtain commercial insurance. It will cover costs you incur due to an auto accident while on the job or operating the company vehicle.
  • Workers’ compensation insurance. This  insurance is a requirement in most states. If an employee suffers from an injury while on the job, worker’s compensation will pay for medical care costs, lost wages if an employee needs time off from work to ensure recovery, disability benefits, and funeral expenses.
  • Professional liability insurance. Small businesses that render services for a fee are required by law to obtain professional liability insurance or errors and omissions insurance. In some cases, your specific industry may need professionals to get this particular insurance cover as well. This will cover for lawsuits if a client files a claim that your advice has resulted in time and monetary losses.
  • Commercial property insurance. If you rent a space for your small business, your landlord may require you to obtain commercial property insurance. This insurance cover will pay for damages to repair your space or office, as well as replace damaged equipment, office supplies, and inventory.
  • Business interruption insurance. Also known as business income insurance, this is suitable for small businesses with recurring expenses. It will help cover lost income from fire, theft, wind damage, and other losses. In addition, if your small business needs to close operations for some time, business interruption insurance will help pay for lost income.
  • Product liability insurance. If your business operations involve the manufacturing, distribution, or sales of physical goods, you will need product liability insurance to protect you against claims that your product caused harm or injury to end consumers.

Final thoughts

If you are unsure about which insurance covers will provide maximum coverage for your business, it is highly advised to seek the guidance of licensed insurance brokers who specialize in commercial insurance policies. They will help you assess your specific business needs and find the best policy at unbeatable rates. While you will need to pay for their professional services, experienced insurance agents will provide valuable advice that can save you time and money in the long run.

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