In the U.S. alone, there are over 30 million small businesses. About 51% of small business owners are 50 or older.
If you’re a business owner, then you might wonder if business insurance is right for you. While business insurance might seem expensive, there’s a reason for it.
This article will go over the different questions you have for business insurance that you can follow. Read on to explore this information about business insurance to decide if it’s right for you today.
Why You Need Small Business Insurance
When you’re searching for the best business insurance, keep in mind that it’s a way to protect your business assets. Even if you have an LLC, the assets of your business can still be in trouble.
If someone slips and falls in your office or shop, you’ll want general liability insurance to protect you from the injuries they might experience. This can include assets such as accounts receivable, cash, materials, equipment, etc. Even if you’re not found to be at fault in an accident, someone might still try to sue you.
Save Your Business Money
Small business insurance can save you money in the long-run since lawsuits and claims can be expensive without it. The fewer claims you have, the lower your insurance rate will be.
In order to protect your business, you need to provide a safe work environment for your employees. This means regular training sessions for them.
Ensure that workers understand how to use business equipment. This can help decrease your chances of a work-related injury. Decrease your chances of a lawsuit by making sure all contracts are easy to understand.
What’s a BOP?
A BOP stands for a business owner’s policy. It combines business income, liability, and property insurance into one.
Business income insurance is for when you have lost income, and your business can’t operate. This is how you can make sure that you keep paying your bills while waiting for your business to be up and running again.
Business liability insurance is for covering the costs of liability claims that are against your business. If a customer falls on your property, they might try to bring a lawsuit against you. The cost of that claim can be covered by your insurance.
If your company experiences loss, the insurance company can come and help you out. You might not be able to afford the cost of getting back on track. Having insurance will ensure that the risk is shared between the insurance company and the business.
What Determines the Price of Business Insurance?
The cost of business insurance is determined by your personal risk tolerance, the amount of liability protection you choose, and how many employees you have. Any specific risks within your industry are calculated as well. They’ll also take a look at the value of the company assets you’re looking to insure.
Purchasing Business Insurance
After speaking with other business owners or friends, you can get a good idea of different business insurance companies in your area. Some of them might also offer specialized business coverage.
Search online for different business insurance companies, some of them are nationwide. You can also check in your area to see who offers business insurance, and take a look at their reviews.
Is Business Insurance Required?
Most states require you to have some sort of insurance. One example is workers’ compensation insurance.
Risks covered can include workers’ lost wages, theft, etc. If you don’t have business insurance, then the payment will come from you.
Cover Your Materials
Different structures and equipment for your business can be expensive to replace or repair. If you don’t have insurance, you’ll need to pay out of pocket for this. Make sure that the coverage you choose has all of your equipment and materials in mind.
Other Business Insurance To Consider
Besides BOP, you might want to consider other business insurance options such as cyber insurance, commercial auto insurance, etc. Professional liability insurance might be a requirement as a separate policy. Businesses that offer professional services often choose this option.
If you have company-owned vehicles, then commercial auto insurance might be right for you. Health insurance is something you might want to include for your employees, family, and yourself.
Commercial umbrella insurance protects you beyond the basic business insurance policy. If you’re a business that stores records online, cyber insurance might be for you. It’ll protect you against malicious malware, and data breaches.
For home-based businesses, there are insurance options as well. This is if your homeowner’s insurance doesn’t cover all of your equipment and property that you need it to.
Review Your Policy
As your business grows, your business insurance coverage needs to grow as well. Review your insurance coverage each year to determine if you’ll need additional policies for your risk protection.
How Can I Find Out What Coverage I’ll Need?
Each industry varies as far as what coverage you’ll need. Speak with an agent to find out what coverage people in your industry have. They can also let you know what liability coverage you might need to protect yourself in the case of an unforeseen circumstance.
Business Insurance Questions Answered
Now that you’ve explored more about business insurance, you should have a better idea if it’s right for you. You should also be able to decide what types of coverage will be right for your business.
Would you like to read more business content? For everything from business to money, check out our other articles today.