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
