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Are you looking to start your own business? Have you ever thought about commercial insurance?
Small business insurance is one of the most important and beneficial means of protecting you and your business. Small businesses of all kinds (food trucks, wedding photographers, estheticians, caterers, etc.) are susceptible to risks that can come with a hefty price tag.
Keep reading to learn the basics of business insurance, 5 reasons you need it, and some common types of business insurance to consider.
What is small business insurance?
Small business insurance protects your business from accidents and risks that are often out of your control. This is a roundup of insurances built into the policy aimed at protecting your business and saving you money.
The type of coverage you use depends on your business operations and your specific needs. Rather than buying individual policies, you can often work with your insurer to create customizable coverage so you pay only for what you need.
Common insurance needs for most small businesses include:
- Comprehensive Liability Insurance
- Product liability insurance
- Tool and equipment insurance
- Damage to rental property
- worker’s compensation
5 reasons to insure your small business
Not convinced you need small business insurance? Here are some reasons why it’s important to your business’s success.
1. Save money
Purchasing small business insurance creates a safety net of coverage. It may cost you money at first, but it usually saves you money when the insurance covers it.
When it comes to insurance claims, you never know what you’ll get. Some claims are small and cheap, while others may exhaust your financial resources. Small business insurance can help keep costs down by reducing or even eliminating the cost of a claim.
In a study conducted by Insuleon, they found that 32.5% of small businesses will experience a covered incident within 12 months. That’s almost 1/3 of the business per year.
For example, if you work as a massage therapist, you face risks every day just because you work closely with others. A client could slip and fall in the office, the oils and lotions you use could trigger an allergic reaction, or a broken table could lead to a costly claim.
Without insurance, it can cost you thousands of dollars in legal fees, judgments, and other costs.When massage therapy insuranceyou can save money by simply submitting an insurance claim and the insurance company will take care of it.
No matter what kind of small business you run, insurance can save you money in the event of unpreventable accidents. Stolen or damaged business equipment can cost thousands of dollars to repair or replace. There is a nature. This cost can waste a lot of money in addition to the time you are not working.
Insurance helps minimize these out-of-pocket costs so you can continue to do what you do best: run your business.
2. Increase professionalism
Just as writing a business plan shows investors that you are serious about your business, having small business insurance can actually increase your professionalism and credibility as a business owner. increase.
With insurance, you are prepared to deal with crises that lead to claims. There are insurance companies that can walk you through how to pay your customers or fix broken equipment. This shows customers and customers that you are serious about what you do and the service you provide.
For example, 30% (20,000) of Food Liability Insurance Program (FLIP) customers report that having insurance helps them win customers. FLIP sends customers a badge that business owners can place on their site, letting them know they’re insured.
Insurance can also help finance your business. When pursuing a business loan or line of credit, your bank may require you to provide proof or proof of insurance. Providing that document gives you a stable credibility.
3. Protect your business
Unfortunately, there is little that can be done to completely prevent complaints from occurring. No matter how careful you are about safety, accidents do happen. Insurance provides a safe buffer so your business is protected in the event of an accident.
Types of insurance that offer good protection include general liability insurance, professional liability insurance, tools and equipment insurance, and cyber liability insurance. There may even be industry-specific coverage covering specialized business assets or liabilities.
For example, consider a wedding photographer who travels with some very expensive equipment. This equipment typically includes camera bodies, lenses, lighting fixtures, and even backgrounds. In the unlikely event that a device is stolen, camera equipment insurance Protect your business by reimbursing your equipment costs.
Without this insurance, the photographer would be responsible for replacing the equipment and would face the situation where the equipment was stolen and they could not work. This situation is just one of the hundreds that small business insurance can help him with.
4. Often required by law
Did you know that you may be required by law to insure your business? If you have a business loan, lease, or business property, you must provide proof of insurance. There may be.
It is wise to insure your business regardless of whether it is against the law or not, but in some cases it may be mandated by the state, such as when: Liquor Liability and the Drum Shop ActIf you are the owner of a restaurant that sells alcohol, your state’s drum shop law states that Liquor liability insurance.
If you rent a space from your landlord, you may need to have the landlord listed as an additional insured on your insurance policy in addition to being insured. Additional insured persons, either landlords or event organizers, must list them on the policy and your insurance will extend coverage to them. It is standard practice to require the landlord to be listed as an additional insured.
5. We deliver peace of mind
When it comes to running a business, there are countless reasons for stress. He should not be the one to be financially responsible.
There are so many facets to running a business. From payroll to day-to-day operations to customer interactions, small business owners have a lot on their minds. Small business insurance provides peace of mind, allowing you to worry less about the outcome of your claims and focus more on the joy your business provides its customers.
Types of Insurance for Small Business Owners
Business insurance can be a confusing subject with confusing terminology. For a brief description of the insurance available to small businesses, keep reading.
Comprehensive Liability Insurance
Protect your business from the costs of personal injury and property damage claims by third parties. These claims can arise in day-to-day business operations, and a common claim may involve a customer tripping over business equipment and being injured.
Tool and equipment insurance
Extend insurance to tools and equipment related to your business. For photography businesses, this includes camera equipment.If you are a food truck, which includes deep fryers and ovens. Limits vary by business type.
Product liability insurance
Designed for companies in the food industry. This insurance can protect your business from the cost of a claim related to a customer getting sick because of the food you served.
Industrial accident insurance
If you have employees, it is the best insurance to include in your small business insurance. May be required by state.
commercial auto insurance
If you have a vehicle that you use for business activities, it is important to add it to your insurance policy. This includes food trucks and delivery vehicles.
Liquor Liability Insurance
Essential and necessary insurance for your business case offer or supply alcoholIt is also required by state drum shop laws. This insurance can protect you from the hefty costs of a claim. These alcohol-related claims often cost thousands of dollars in out-of-pocket costs if you don’t have insurance.
Property insurance for rental property
You can protect your business from the cost of claims arising from damage done to your rental space. This could be a photo studio or a commercial kitchen, or a space you rent for your business. This coverage is essential for small business insurance when renting business space.
Cyber liability insurance
A great addition to your insurance policy. With cybercrime on the rise, it’s important to take steps to protect your business. If you store information online on your tablet, phone, or mobile device, this coverage should be part of your policy.
best place to buy small business insurance
There are many options when searching for small business insurance. You’ll need to do your research and find a reputable place to provide the coverage your business needs.
Below are some industry-specific options worth considering.
Prepare for your small business insurance needs
As a small business owner, you face many challenges, and insurance doesn’t have to be one of them. Having your business insured can save you time, money and stress. It provides peace of mind, protects your business and improves professionalism in the business field.
Don’t wait until it’s too late. Find the right small business insurance for your business needs. You won’t regret it.