There are a lot of problems that small businesses face, but a good insurance policy may help your business stay financially stable. The best solution is to look for the best insurance for small businesses.
Insurance for small businesses protects your business from financial damages that can result from accidents, property damage, professional errors, workers’ compensation claims, and other situations.
Having accurate coverage is critical to minimizing the negative impact of claims against your business.
Small business owners often worry about how to cover their employees’ medical expenses in the event of an accident or illness. Fortunately, there are many options available to ensure that your workers are protected.
What is insurance for small businesses?
Insurance for small businesses protects your business financially if someone sues you for damage to their property or injury, or if they say you didn’t do a good job as a professional.
Also covered are the tangible assets of a firm, such as inventories. And because hacking is becoming more common, your business needs cyber liability insurance to cover the costs of fixing its computer network if criminals break into it.
Types of Insurance for Small Businesses
You may be surprised to learn that there are different types of insurance for small businesses coverage. Read on to discover them all!
1. Commercial General Liability
CGL covers property damage caused by accidents or injuries at work. It also protects against lawsuits filed by people who were injured while using company equipment.
2. Commercial Property & Casualty
If you own a business, you need liability insurance. This policy protects you from legal claims made by customers or third parties harmed by your business.
3. Errors & Omissions
E&O insurance covers any errors or omissions made by your company while providing services. It also covers any mistakes made by employees who work with clients.
4. Professional Liability (PL)
PL protects your business against lawsuits filed by third parties. If an employee makes a mistake that harms another party, PL will help cover the costs associated with defending yourself in court.
5. Workers compensation
Workers compensation insurance offers coverage for when an employee becomes ill or injured because of their job. It’s required in most states, but rules on who has to be covered vary
6. Commercial auto
Commercial auto insurance covers the vehicles you use for business purposes. A personal auto insurance policy generally doesn’t extend to business use of a vehicle.
7. Cyber liability
Cyber liability insurance can pay for recovery costs if your computer system and data gets hacked. Cyber liability insurance is also known as cybersecurity insurance or cyber risk insurance.
How do I get insurance for small businesses?
Obtaining insurance for a small businesses is very simple provided that you have your company’s details on hand. An insurance application will request relevant data about your business, such as revenue and number of employee.
How much does insurance for small businesses cost?
Small businesses, especially those with low risks, can often get cheaper insurance for small businesses.
But there are a number of things that affect insurance costs, such as industry and risk factors, limits on coverage, Location, and How many people work there.
Insurance costs for small businesses can vary greatly.
That’s because not everyone needs the same type of insurance and insurance companies use different factors to determine cost.
The information provided below will help you understand the average costs that business owners paid for various types of coverage.
- Business Owner’s Policy (BOP) – Average Annual Premium: $3,125; Average Monthly Premium: $261
- General Liability Insurance (GLI) – Average Annual Premium: $1,057; Average Monthly Premium: $88
- Workers’ Compensation Insurance – Average Annual Premium: $840; Average Monthly Premium: $70
Most small businesses would lose money if they were sued or if they suffered a huge loss, like losing all of their stock in a fire. For those businesses, commercial insurance is a must.
Without insurance for small businesses, you’d have to pay for the legal costs of lawsuits and find a way to pay for damage to your business property.
General liability insurance and commercial property insurance are good places to start. Commercial auto is important if you have cars, trucks or vans that you use for business.