Small business insurance can be a confusing and overwhelming subject. If you are running a small business, you want to protect your employees and investment as much as possible. However, sometimes, it is hard to know what to get and what you need. This article will give you an idea of how to approach small business insurance and the things you should consider.
The Kinds of Insurance You Need for Your Small Business
There are three different kinds of insurance you need for your business: property insurance, liability insurance, and workers’ compensation insurance.
1. Property Insurance
Property insurance is the most important thing you should buy for your small business. This is the “big picture” insurance. It covers the buildings, cars, and other properties you own.
2. Liability Insurance
Liability insurance is the second most important kind of insurance you should buy for your small business. This is the insurance that will protect you from lawsuits, including those coming from customers.
3. Workers’ Compensation Insurance
Workers’ compensation insurance is the third most important thing you should buy for your small business. It protects you from lawsuits coming from your employees. Moreover, it also covers expenses that could come up as a result of an employee injury.
Business Owners’ Policy
The most popular option for small business insurance is a business owners’ policy, or BOP. A BOP covers your business’s property, liability, and workers’ compensation insurance in one.
A BOP is an excellent choice for small business owners because it covers all your bases in one policy and has a low rate.
Specialty Insurance
Any specialty insurance would go in addition to your BOP, except for commercial auto insurance. Commercial auto insurance can go with a BOP because a car or truck is usually high-value.
Insurance Limits
The limits you choose for your business insurance are very important. For property insurance, you should buy enough to cover the replacement value of your assets. For liability insurance, you should buy enough to cover the largest possible judgment, multiplied by three.
How Much Will It Cost?
The rates for small business insurance depend on many different factors, like the risk of your business. Your assets’ location, size, and value will determine your rates. Other things that can affect the rate include your claims history, the type of business you have, and the industry you’re in.
How to Choose the Right Provider
It is important to choose a provider that has a good reputation. You should consider more than just the price. You should consider the following factors:
- How long have they been in business?
- What kind of coverage do they provide?
- What kind of rating do they have?
- How often do they have had lawsuits filed against them?
- What kind of customer service do they provide?
Protect Your Small Business Today
Taking out a small business insurance policy can be hugely important, but a lot of people are confused about how these policies actually work. That’s why we’ve created this guide for small business owners and individuals who want to learn more about this vital form of protection. If you haven’t done so yet, now is the time to start looking into small business insurance and see how it can benefit you and your business.
Get small business insurance with our help at Quesurance. We serve Hopatcong and the surrounding New Jersey communities. Let us help you today. Contact us!
