When you’re buying small business insurance, your decisions should align with your business’s type and size.
Small business insurance options like general liability, commercial property, and workers’ compensation insurance are common choices.
Table of Contents
General Liability Insurance Is Essential For Small Businesses
General liability coverage, an essential component of small business insurance, helps businesses protect against liability claims related to bodily injury and property damage as well as reputational damage, legal expenses and settlements.
Commercial Property Insurance for Protecting Small Business Assets
Commercial property insurance is essential to small business success, protecting physical assets from fire or theft while providing peace of mind to your work environment.
Commercial property coverage provides security to all sorts of items critical to keeping operations running smoothly and safely.
Workers Compensation Insurance: Employee Care in Small Business Insurance
Workers’ compensation insurance is a mandatory small business insurance in most states. Small business insurance should include protection for employee illnesses and injuries caused by their job – this makes employee coverage an essential aspect of protection.
Commercial Auto Insurance: Vehicle Safety in Small Business Insurance
Commercial auto insurance, a necessary small business insurance, covers vehicles used for business purposes. Without this small business insurance, claims could be denied, leading to costly expenses.
Errors & Omissions Insurance: Professional Protection in Small Business Insurance
Errors & omissions insurance, part of small business insurance, pays for liability costs if accused of professional mistakes. Insurance protection for small business is crucial to those offering services to others.
Inland Marine Insurance: Transport Coverage in Small Business Insurance
Inland marine insurance, a unique small business insurance, covers property transported over land.Small Business Insurance provides coverage that safeguards equipment, materials, and products in your line of business.
Cyber Liability Insurance: Digital Security in Small Business Insurance
Cyber liability insurance, a modern small business insurance, covers recovery costs if hacked. Small business insurance policies such as these are essential for digital security and customer notification as well as credit monitoring.
Short-Term Liability Insurance: Flexible Small Business Insurance
Short-term liability insurance, a flexible small business insurance, is designed for short projects. This small business insurance covers accidental damage and legal costs, ideal for seasonal businesses or specific projects.
Medical Malpractice: Specialized Small Business Insurance
Medical malpractice insurance, a specialized small business insurance, covers claims resulting in patient injury or death. If your small business deals with medical care, this small business insurance is essential.
What Are My Small Business Insurance Cover Options?
Here is an in-depth examination of some of the top coverage types for small businesses.
General Liability Insurance covers legal costs such as hiring an attorney and any judgments rendered against you and/or your business, including damage to reputation such as slander/libel and copyright infringement.
Liability insurance protects others rather than itself and is also known as business liability coverage.
Commercial property insurance offers protection for many business items, such as computers and workstations, desks and chairs, records, inventory and supplies for your office and building.
Commercial property insurance (or business property insurance) provides businesses with protection against losses caused by damage or theft to their assets.
Workers compensation insurance provides many benefits for employees who become sick or injured while at work, including medical treatment, physical therapy and compensation for lost wages.
Businesses purchasing workers compensation insurance for employees is mandated in most states.
Understanding the Cost of Small Business Insurance Coverage
How much does small business insurance cost? According to Insureon, small business insurance typically costs approximately $57 a month on average for a business owner’s policy (BOP), a popular package which offers general liability, commercial property and business interruption coverage rolled into one premium plan.
Opting for this package often proves more cost-effective than purchasing each policy separately.
Cost of small business insurance varies based on several factors.
Industry: Each industry presents unique risks. Small business insurance for higher-risk industries like construction will typically cost more than cover for lower-risk professions like freelance graphic design.
Size of Payroll and Annual Revenue: As your business spends more on expenses and operating costs, liability coverage costs could become increasingly expensive.
Employee Count: As more staff means more accidents, your small business insurance costs could increase with them.
Location: Your business’s location can have an effect on its insurance costs. Operating in high-crime areas could increase premiums.
Age and Size of Buildings: Insuring older and larger structures could cost more with small business insurance compared to insuring more modern, smaller structures.
Coverage Amount and Types: Your coverage amount and types will impact costs; for instance, having a business vehicle increases expenses substantially and therefore necessitates commercial auto coverage – which adds significantly to overall expenses for small business insurance policies.
Claims History: Filing claims on behalf of your small business can increase its premiums.
By understanding these factors, it will enable you to make more informed decisions regarding the insurance needs for your small business and find a plan that fulfills both budgetary constraints and regulatory specifications.
