The last two years taught us that life can always throw us a monkey wrench. It has been a rollercoaster, with many businesses falling off the ride. The uncertainty of the times forces us to get small business insurance.
You might already understand how essential it is for you to get one. But the process of choosing can be a tad challenging, especially with many types of coverage presented to you. In this case, kindly continue reading this article because it will guide you through your purchase journey.
As an entrepreneur, you may have made concrete plans to mitigate risks. Purchasing an insurance policy is one of the easiest and best ways to lessen your vulnerability. Getting the right coverage will help your business kick off the ground and expand.
Know the Types
Yes, you know that you need small business insurance, but your question is what type. Before going to an insurance broker, you must consider your industry, specialty, and business assets. Here are a few of the common business insurance policies:
- General liability insurance provides financial support for liability lawsuits over third-party injuries, third-party property damage, or advertising injuries like defamation or copyright infringement.
- Business owner’s policy (BOP) combines general liability insurance with commercial property insurance – usually at a lower cost than when purchased separately.
- Commercial property insurance pays for the repairs or replacement of stolen, lost or damaged business property, including your office or workspace, inventory, equipment, and furnishings.
- Business interruption insurance can also be part of the BOP or commercial property policy. It covers operating costs if your business is forced to temporarily close due to a storm, fire, or other events.
- Professional liability insurance gives coverage for businesses that provide professional services. Some call it the errors and omissions insurance.
- Cyber liability insurance can financially help you with the cost of data breaches and other cyber incidents. It includes the legal fees if you are sued for your client’s data breach.
- Workers’ compensation insurance covers the medical expenses and lost wages for work-related injuries or illnesses. This small business insurance includes employer’s liability insurance that protects employees against lawsuits over negligence.
What Is Legally Required
This investment may be a sound plan to mitigate risks, but sometimes it is required. Depending on your industry, state, clients, and lenders, you might be asked to carry certain coverage.
Let us say that you are renting a commercial space. In this scenario, your landlord may ask you to invest in a general liability policy to cover third-party lawsuits. Typically, mortgage lenders have the same requirement for business property owners.
With few exceptions, businesses with employees are required to have workers’ compensation insurance. Each state has varying rules concerning this coverage, but most of them need you to hire your first employee.
Conclusion
Small business insurance boosts your protection against financial risk. You know that you are in a better place for a small price than having no coverage at all. During these uncertain times, this protection is necessary.
If you want to enhance your financial coverage by investing in small business insurance, talk to our team at Quesurance. We understand that times are tough, and we want to help you get through them. Book an appointment now and lessen your financial vulnerability.
