Small Business Insurance. While carefully planning how you can reduce risk in your business, no amount of research and preparation can protect you from every single threat out there. To avoid these risks, it’s advisable to buy a small business insurance policy.
What is Small Business Insurance?
This is a form of risk management used to protect you and your small business from financial loss in the event of an accident or crisis. Small business insurance is a paid policy you can take out to protect your business and yourself.
This includes financial liability protection in case of property damage, injuries, worker’s compensation claims, lawsuits, or any other losses that may occur while running a business.
Types of Small Business Insurance
The type of business insurance you need depends on your business risk as well as factors such as state laws, minimum requirements, and client contracts.
The types of small business insurance are as follows:
- General Liability Insurance
General liability insurance provides coverage for various claims, including bodily, injury, property damage, personal or advertising injury, medical payments, and damages to premises rented to you.
- Workers Compensation Insurance
Workers’ compensation insurance covers the medical costs and a portion of lost wages for an employee who has sustained a work-related illness or injury.
- Commercial Property Insurance
protects your physical assets, building, equipment, tools, inventory, furniture, and personal properties. And also covers financial losses due to property damages from fire, theft, or loss.
Commercial property insurance coverage ranges from basic to comprehensive.
- Business Income Insurance
This is also known as business interruption insurance. This is one of the most common types of coverage that most small businesses need. Business interruption insurance will help cover loss of income or operating expenses like mortgage or rent, loan payments, taxes, and payroll if a disaster strikes, such as fire, flood, theft, building collapse, or a civil authority incident, and your business is required to shut down for a while.
- Commercial Auto Insurance
This protects your cars, trucks, or vans used for business purposes in case of damages, injuries, or liability claims. Including property and liability trailer exposure, loading and uploading exposure, hired vehicle coverage, and non-owned vehicle coverage.
- Business Owner`s Policy
Business owners’ policies provide coverage for customer injury, property damage, and product-related claims, in addition to commercial building and movable property coverage. This coverage type is essential for owners of restaurants, retail stores, and wholesalers. However, the business owner’s policy does not cover employees.
- Commercial Umbrella Insurance
Commercial umbrella insurance helps pay for an extra layer of liability protection by covering costs that go beyond your liability coverage limits.
- Cyber Liability Insurance
Data breaches and ransomware—extortion software that locks you out of your device or encrypts your data until you pay a ransom—can cause actual harm to your customers and your business. Cyber liability insurance helps inform customers about an attack, compensate them in case of a claim, and pay for free credit monitoring for affected customers.
The Best Small Business Insurance Providers
When choosing a small business insurance provider, you will generally want to consider your needs, financial capability, and risk before looking for a company that meets your needs. Below are some of the best small business insurance providers you should consider using.
- Liberty Mutual
This is one of the biggest insurance providers in the world. And the sixth largest for property and casualty insurance. Their coverage options include
General liability
Workers Compensation
Commercial auto and fleet
Environmental liability
Management liability
Health care liability
Excess and surplus
Business owners` policy
Professional liability
- Nationwide
Nationwide has been in business for almost a hundred years, and they are one of the best when it comes to small business insurance. They provide coverage like
Workers Compensation
Commercial auto
Business income
Employment practises liability
Cyber liability
Errors and omissions
Business owner`s policy
Crime insurance
Accounts receivable
- Progressive Commercial
They are best known for their commercial auto coverage. However, they offer a full range of services. Coverage options include
Business owner`s policy
Cyber insurance
Professional liability
General liability
Employment practise liability
Commercial auto
Commercial property
- State Farm
State Farm offers industry-specific insurance for every growth stage of your business. Their coverage options include
Contractors` policy
Commercial auto
Business owner`s policy
Workers Compensation
Liability umbrella
- The Hartford
They Are one of the oldest small business insurers in the United States. It started as a fire insurance company but expanded to offer a wide range of customizable options.
General liability
Worker`s compensation
Commercial auto
Commercial property
Business income
Cyber liability
Business owner`s policy
Industry-specific insurance policies
Professional liability
- Travellers
Travellers are known for providing commercial property insurance. in addition, they also provide coverage options like
General liability
Commercial property
Worker`s compensation
Business income and extra expenses
Cyber liability
Business owner`s policy
Professional liability
Employment practise liability
Commercial umbrella
Commercial auto
Frequently Asked Questions
What are the Benefits of Small insurance policies?
Hard work and courage are the foundations of building a successful business. But in today’s society, business owners need more than a great idea to keep their businesses profitable and running each year. Business owners need the right one to protect their companies against risks, losses, and damages.
Here are some of the benefits you stand to enjoy:
Helps Businesses win more Clients.
Trust is the currency of today’s economy, and insurance coverage builds trust and confidence in a business. Many customers may choose to work with companies they can rely on. Having insurance can reinforce customer satisfaction and provide compensation if anything goes wrong, a win-win for business owners and their customers.
Helps Businesses attract and Retain the best talent.
Purchasing the right insurance policy for your business benefits both the employees and the business. People prefer to work with companies that protect their best interests, safety, and future. An employment package that includes disability insurance, general liability insurance, and health insurance attracts the best talent.
Protects your Business against the Damaging effects of Lawsuits and claims.
This may cover the cost of lawsuits and legal claims in the event of injury, damage, or a suit against a business by their employees or clients. Without an insurance policy, business owners will pay for the cost of damages out of their own pockets. A lack of insurance could be devastating for the business.
Which Clients Need Small Business Insurance?
Businesses that may greatly benefit from the coverage include those that
operate from a physical location.
Engage with clients face-to-face.
Working logistics and transportation
Have at least one employee.
Work with physical goods and production
Operate in high-volume and Cash production.
Transfer customers and data over the internet.
Work in the building and construction industry
What`s the cost of Small Business Liability insurance?
Small Business Liability insurance costs differ. Every business’s insurance needs are unique. The insurance premium a business pays may vary depending on the size of the business and the risk covered. For example, the premium a business with three employees pays for general liability insurance will be less than that of a business with ten employees.
