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11/16/21

This Is Why Small Business Insurance Makes Sense

Did you know that 40% of all small companies have ZERO business insurance?
And that another 75% are considered to be underinsured?

When you think about it, those numbers are actually not so surprising - business insurance does cost money and companies trying to bootstrap their operations are trying to make every dollar count. But here’s the thing…

Uninsured and underinsured small businesses are taking a huge gamble, and if the wrong side of the coin falls, then being forced to close up shop is a very real possibility.

Today, I’m going to show you the different types of small business insurance and how they protect you.

General Liability Insurance

At any customer-facing business, you can be liable from the moment a visitor steps foot onto your physical location.

And if there’s an injury, you can guess who’ll likely be footing your visitor’s medical bills - you. That’s where general liability insurance comes in - it covers these types of injury situations with a set limit for how much the insurer will pay.

Of course, if you’re an online-only business or have no public interaction, general liability insurance may not be right for your particular situation. Still, it’s worth talking to your insurance provider to determine your exact injury liabilities.

Business Property Insurance

If you’re running your company from property that your business owns, then it’s not only a good idea to have business property insurance - you can be fined if you don’t have enough!

That’s right. Some states require companies to have adequate business property insurance and if it comes up short when put to the test, you could be facing a hefty penalty.

The good news is that many insurance providers will bundle general liability and business property insurance plans into a single package, making it easier to stay protected AND on the right side of the law.

Business Interruption Insurance

Think for just a second about what happens when a fire, extreme weather, or, I don’t know, a global pandemic shuts down your business. That’s lost income and if you’re on a tight budget, it can mean you’re simply unable to pay your normal expenses.

What business interruption insurance does is give you a way to stay afloat during these difficult times. Most plans have predefined limits, such as a set amount of money that will be paid or a time period (like 6 months) for when you’re covered.

When choosing a business interruption insurance plan, you and your provider will need to stipulate what events are covered.

Other Business Insurance Coverage to Consider

It’s never pleasant to add extra costs onto your company’s expenses, but business insurance is one that should never be ignored.

Depending on your state’s regulations and business industry, you may also need:

     Workers’ Compensation Insurance

     Cyber Liability Insurance

     Employee Liability Insurance

     Product Liability Insurance

     Professional Indemnity Insurance

Before starting any operations with a new business, it’s wise to meet with an insurance advisor and make sure you’re adequately covered.

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