One of the main challenges for small business owners, especially during the ongoing COVID-19 pandemic, is determining whether small business insurance is a necessary expense. Each penny counts in a tight market. Everyone is looking to cut corners and find ways to survive and thrive in this ever-changing economy. As a business owner, the risks to your income and viability far outweigh the savings of doing without proper insurance coverage. Additionally, federal, state, and local laws require a certain level of coverage to maintain your business license.
What Insurance Does A Small Business Need?
The bottom line in purchasing small business insurance is to protect your business. Commercial or Small Business Insurance is a broad term for the many individual policies that create complete protection for risk management. At a minimum, you will likely want to secure the following types of coverage:
- Commercial Property Liability – offers coverage for injury and court costs.
- Workers Compensation – provides benefits to your employees if they get injured or sick from their job.
- General Liability – protects you from lawsuits from customers, vendors, or the general public.
- Loss Of Income – helps you recover lost income for disaster and other covered peril.
- Unemployment Insurance – protection from additional expenses above the Federal and State mandated payroll taxes.
- Commercial Auto Insurance – covers your work vehicles and drivers.
- Data Breach / Cyber Insurance – protects your customers and business from the liability of identity theft.
All of these policies will have coverage limits, and you should expect a deductible for each policy claim.
You may wish to purchase a Business Owners Policy (BOP), which offers a package of full coverage for Property, General Liability, and Business Interruption. The best way to find your optimum coverage is to have a thorough discussion with your agent at Independent Insurance Associates.
How Much Does Small Business Insurance Cost?
Every business has specific needs. Commercial insurance is a necessity for protecting your small business. There are ways to lower costs, but choosing to forego coverage is a gamble and a sure way to lose everything. Federal, state, and local laws require minimum types of insurance to protect employees and customers. You could lose your ability to do business if you are in breach of those laws. How much is it to insure a small business? It depends because insurance is not one size fits all. Building a policy to protect your individual needs is your insurance agent’s job.
How To Get Small Business Insurance
Before you make inquiries about insurance coverage, write a complete description of your business. There is a considerable difference between making a product and offering services. List your equipment, number of employees, the type of property, and precisely what you produce or provide to your customer base. A law firm will have very different needs from a restaurant when protecting business assets. It makes no sense to purchase coverage your business does not require, especially when looking to save money on your insurance costs. Ask your agent about lowering your expenses by combining other policies, taking steps to obtain additional discounts, or aligning equipment upgrades like fire suppression or alarm systems. The rule always applies that the higher the deductible, the lower the premium costs, so try adjusting those numbers to keep your business protected.
Every small business is looking for ways to lower costs. The last place you want to take a business risk is in insuring your company against loss. Your local Independent Insurance Associates recognize how difficult the pandemic has been for many small companies. Contact us today to discuss opportunities to combine or lower some of your insurance expenses. Managing risk is what insurance does best, and we are happy to help ease some of the stress involved with business ownership.