Insurance provides your business with a safety net to guard against unexpected disasters and lawsuits, with coverage depending on its industry of operation.
Every small business requires general liability coverage to address customer injuries and damage to property, while many require package policies that combine multiple forms of coverage such as business owner’s policy (BOP), commercial auto policy, and workers’ comp.
General Liability Insurance
Business insurance protects small businesses against an array of financial disasters. It covers costs related to bodily injuries to customers or third parties, property damage, copyright infringement and reputational harm incurred from lawsuits or any unforeseen liabilities that arise as part of doing business.
Most small businesses should have general liability coverage. Depending on the nature of your business, professional or product liability may also be necessary depending on what services are provided and disputes over quality issues are handled appropriately. It might also be worthwhile considering purchasing a business owner’s policy which bundles general liability and commercial property coverage together.
Cost of general liability insurance depends on factors like location, crime rate and claims history of your business. Furthermore, choosing an appropriate coverage limit that fits within both your specific risks and budget should also be carefully considered. Most small businesses opt for $1 million per-occurrence and $2 million aggregate coverage limits but higher coverage amounts are available as well as adding an umbrella policy to expand maximum limits further.
Business Owner’s Policy (BOP)
BOPs combine business property and general liability coverage into one policy at lower costs than two separate policies would, and may include endorsements to address specific concerns – for instance an accounts receivable endorsement may cover loss of payments from customers due to disasters such as fire. They may also include business interruption insurance to compensate for lost income and extra expenses during disruptions – however BOPs typically don’t include professional liability, auto or workers’ compensation coverage.
To determine your eligibility for a Business Owners Policy (BOP), insurers consider factors like the nature of your business, size and location of its primary location, employees count and revenue. When shopping around for insurance for your small business it’s essential that you compare options carefully so you have adequate protection. Next provides comprehensive online quotes – an ideal option for small companies without needing specific coverage such as directors and officers insurance policies.
Commercial Auto Insurance
What type of coverage you require depends entirely on the risks your business is exposed to. An accountant should be concerned about being sued for filing errors on tax returns; while restaurant owners might have greater concerns regarding customers becoming sick after eating their meal.
Many small businesses need commercial auto insurance for vehicle accidents and other incidents that happen while operating a company vehicle, while also needing hired and non-owned auto (HNOA) coverage to provide liability protection when employees drive personal cars or rental cars on business errands.
An experienced insurance agent can assess your risks and design a policy tailored to meet them, while offering advice that can reduce costs. When searching for coverage, prioritize financially stable providers who specialize in serving small business owners; this helps guarantee they can cover any claims.
Workers’ Compensation
Workers’ Compensation insurance is required in most states as part of legal regulations for businesses to operate legally, as it pays for medical treatment and part of lost income when employees are injured while performing their jobs. Individual states vary on rates; rates tend to depend upon payroll.
Small business owners should also invest in professional liability insurance to protect themselves from lawsuits over real or perceived errors in providing services, while directors and officers (D&O) insurance provides coverage against claims of mismanagement by company directors or officers.
Selecting the appropriate types of small business insurance policies is essential to its financial health. Consulting a licensed independent agent to assess your primary risks and find policies which offer optimal protection is recommended; contact us now and let’s get you covered!