So, you’ve opened the business of your dreams: congratulations! Many hours of hard work have led you to satisfaction, finally. But are you aware of all the risks and unexpected financial losses?
This is where business insurance comes in. Being aware of the expected losses your business might suffer is the first step to finding the best cheap business coverage. And don’t worry, you can maintain your business coverage without spending too much money.
Things to know about small business insurance
We know how much time, energy, and money you’ve invested in your small business. And now is the time you probably ask yourself if you really need a business insurance policy that can protect your company and possessions. However, without business insurance, you might have to pay some unwanted costs on your own, which can put your business’ finances at risk.
As an example, let’s say that an office at the workplace is accidentally set on fire and causes serious property damage. Without insurance, you will have to pay for all the repairs and replacements. And that money should come out of your pocket, which is not good news for someone who just opened a small business. That’s where commercial property insurance comes to help!
Every business is different and deals with many risks. It means that there isn’t just one insurance that could cover all the damages. Finding the right small business insurance is essential and, as you research your options, you will see that there are many business details that will help you get the right coverage, including:
- The type of business you run
- Your gross annual sales
- Your number of employees
- Your business’ structural plan
No matter the type of business you run, be it a cooperative or small accounting business, you will need free business insurance quote comparison tools that will help you get the best and cheapest business insurance coverage to protect your business. Let’s face it: unexpected things and accidents can happen at any time, as the whole globe saw throughout the COVID-19 outbreak, and all kinds of businesses should protect themselves financially as much as possible from any potential occurrence that might disrupt their business and cause financial loss.
Thus, with so many insurance companies out there, you must ensure you choose one that will fit your specific business needs. And it is especially vital to do it, as Covid-19 is still around and makes things even harder to manage. But guess what? Now, it’s easier to read insurance guides, compare insurance companies and discover what policy best fits your unique requirements.
What insurance to choose for your small business?
If you’re asking yourself whether you need insurance for your small business or not, the answer is definitely “yes”. Any business owner must take responsibility and protect their company from risks. But how do you choose the right coverage? You should start with:
- General liability coverage
- Commercial auto coverage
- Workers’ compensation coverage
These are the three most important types of business insurance coverage that will keep your company running. You must learn how to protect your business belongings, as well as employees’ and customers’ safety. The average client injury property damage claim is around $30,000. So, BOP (Business Owner’s Policy) is recommended for many companies.
General liability insurance can help business owners protect themselves from claims of people’s injuries or property damage. For example, let’s say you have a shop and a customer slips and falls in your store. If you don’t have coverage, you will pay for their medical bills. And these costs can be huge.
On the other hand, commercial property insurance can help protect your business’ location, and other things like furniture, tools, equipment, and so on. Taking into consideration the example above, if a fire damages your workplace, commercial property insurance can help replace your equipment.
Another option is business income insurance – this type of coverage helps you replace lost income due to fire and other covered losses. So, if you must temporarily shut down your office because of a fire, this coverage could help you pay for lost revenue.
Let’s also consider commercial auto insurance – if you have employees who travel to work by car or use a car for work purposes, you will need commercial auto insurance. Why? Because this policy will cover unexpected accidents if your employees are at fault.
Buying insurance for your small business
There are many different business insurance types for all kinds of business operations that are customized to their precise needs. For example, semi-truck owner-operators that perform deadhead drives from time to time are normally required to have bobtail insurance or non-trucking liability insurance. Bobtail insurance is a type of coverage for commercial trucks. If you have a business that needs to transport merchandise and get involved in an accident as you or one of your employees drives a truck, you will need protection for unwanted claims that can come up with high costs.
Having Bobtail insurance will give you coverage for property and physical damage. Otherwise, you will spend thousands of dollars on auto repair costs. But this insurance will protect you from facing ridiculous damage costs in case of an accident. However, be aware of the fact that trucking liability insurance doesn’t cover you in case of vandalism or burglary.
When starting out a business and dealing with many things at the same time, insurance may seem like just another chore. However, it needs to be done because it can save you from a lot of trouble down the line. But if you shop around and choose the cheapest insurance type of coverage, you can save a lot of money. Make sure you do some research before buying your insurance coverage, and always ask your insurance agent for clarification if needed. Once in a while, check the policies renewals, and make sure that you still get the best deal. Evaluate your business risks and stay on top of claims; this will give your business the protection it needs.