Entrepreneurial endeavors pose multiple risks. Protecting against financial disaster, safeguarding hard-earned assets, and helping your business prosper can all be accomplished with proper insurance protection.
Small business owners need to consider multiple forms of insurance when starting up, including property, liability and business income coverages. Some also need commercial auto and professional liability or errors and omissions insurance policies.
Property Insurance
Small business property insurance is an essential form of protection against physical assets for your physical business, providing financial safety net and quickly recovering from fire, theft or vandalism related losses.
Cost of commercial property insurance will depend on factors like its type and amount, size of business and location of operation. Businesses with more high-value property tend to pay more.
As opposed to personal property policies, which only cover your own possessions, commercial property policies typically also cover “business personal property”, which refers to equipment belonging to others that is held under your care (for instance rental cars or leased equipment). Furthermore, floating property coverage may also provide extra peace of mind, for instances such as wedding photographers’ cameras or contractors’ tools and mobile equipment being transported around between locations.
As you compare commercial property insurance providers, be sure to assess their credit ratings and financial stability. This provides an indicator of their ability to pay claims should they arise – information can be found through various independent rating agencies like AM Best, Moody’s or Standard & Poor’s.
Liability Insurance
Entrepreneurs invest countless hours, sweat and resources in building their small businesses; providing themselves with adequate protection can go a long way in protecting the fruition of all of their hard work. A comprehensive business insurance policy is one way to safeguard investments.
General Liability Insurance, commonly referred to as commercial liability coverage, helps cover legal costs if someone claims your business caused bodily injury or property damage, as well as protect against financial loss due to reputational harm, advertising injury and copyright infringement. Landlords, lenders or licensing agencies often require this form of coverage and its inclusion is often included within a Business Owners Policy or Commercial Package Policy (CPP).
Cyber liability insurance provides small businesses with protection from the costly expenses related to data breaches and cyberattacks, including notifying customers who may have been compromised, providing credit monitoring services and more.
Directors and officers (D&O) insurance can protect directors, officers, and key leaders of small businesses from costly litigation expenses arising from decisions they have made on behalf of their company. It also covers legal fees should someone file suit over decisions they made while acting as directors and officers.
Workers’ compensation insurance is required in most states and helps cover medical costs, wages and benefits for employees who have been injured on the job. It may be mandated by state laws or through employer contracts with workers.
Business Owner’s Policy (BOP)
Business owner’s policies (BOPs) provide small businesses with property and liability coverage at an economical cost, and may even be required by commercial landlords as part of lease agreements. BOPs have become an increasingly popular way of protecting small enterprises.
Inszone’s team of knowledgeable agents are here to assist in understanding your risks, providing answers and offering a BOP quote that meets your specific needs. In addition, they’re capable of customizing coverage by adding optional coverages like professional liability, equipment breakdown and marine.
Cost of Building Owner’s Policy (BOP) depends on factors like its value, type, location and claims history; your insurer will consider both when calculating premiums.
Combining a BOP with Direct Primary Care (DPC) plans can provide health benefits to your employees. This preventive healthcare model helps lower emergency healthcare costs that could interfere with business operations and lead to costly lawsuits; additionally it improves employee morale allowing your company to grow faster than ever.
Commercial Auto Insurance
Business auto insurance provides your business with liability protection in case an accident involving cars, trucks or vans owned or leased by it occurs. In addition, physical damage coverage such as collision and comprehensive may also be included, as well as lease gap coverage which helps pay the difference between its market value and loan or lease balance when the leased vehicle is totaled. An independent agent can advise which options would work best for your company.
Your HVAC installation or construction business could potentially face liability if one of its employees rear-ends a sports car driven by an executive, with commercial auto insurance covering repairs to both vehicles as well as medical bills if found responsible. In addition, uninsured/underinsured motorist coverage (UM/UIM) and medical payments offer important coverage options if there’s an uninsured or underinsured driver involved.
According to Insureon, small businesses typically pay an average cost of commercial auto insurance policies of $147 monthly for coverage. An independent agent is often your best bet at finding great value because they can compare quotes from multiple carriers quickly with one application, giving your business all of the protection it needs without taking up your valuable time.
