Commercial insurance protects your small business from unforeseen events. Many firms have specific risks from which they need protection, but nearly all small businesses need protection from general liability, property damage, and income loss.
If any adverse event negatively impacted your business assets, or if you were slapped with a lawsuit, and not covered by business insurance, your business, and sometimes even you as the business owner, might be liable for the damages. Such a situation could be financially devastating.
Key Protections for Small Businesses
A Business Owners Policy is a general insurance coverage essential for all small businesses. It covers your business property, business liability, and your business income, and this is all done under one insurance policy.
The Business Owners Policy coverage protects you from damage to the physical location of your business and the business assets, such as furniture, equipment, and documents. The losses covered include theft, malicious damage, fire, etc.
Business Liability protection covers the costs of any liability claims against your business. These types of lawsuits usually follow events like injuries to a customer (tripping, using a faulty product, etc.) The business liability insurance would help cover the costs of such claims.
Suppose your business suffers a temporary loss of income, for example, after a fire or natural disaster. In that case, the insurance replaces the loss up to the amount you have in your coverage. This insurance payout can help you meet the running expenses of your business, like the payroll, rent, and bills, until the company resumes operating.
Specific Business Insurance Needs
As a business owner, you know that your business insurance may require a more tailored approach because of specific risks. Your business insurance needs will depend on your type of business, the physical premises, property and equipment, intellectual property, employees, and customers.
Don’t forget that your insurance coverage needs to change as your business grows, so review your policies with your broker, ensuring that you are always fully and adequately covered.
It would be best if you considered industry-specific business insurance to meet business needs in some industries.
Foodservice businesses are at greater risk of business liability claims.
Foodservice businesses also need to consider additional coverage specific to this industry, including Temperature Change and Liquor Liability insurance.
Restaurants that sell liquor are more vulnerable to related liability claims.
Separately, broken refrigerators can cause immense financial damage to a food services business because of food spoilage. Temperature Change Insurance can help protect these businesses from the losses from these breakdowns.
Retail businesses should consider Business Income from Dependent Properties Insurance and Franchise Upgrade coverage.
Business Income from Dependent Properties Insurance covers the cost of lost business if a third party fails to deliver essential products that your business depends on, forcing you to lose income.
Franchise Upgrade coverage could help you meet any franchise upgrades required after any damages are incurred.
Professional Indemnity Insurance
If your business provides professional services or advises others, you must protect yourself from any mistakes deemed negligence by the courts.
Usually, doctors, lawyers, consultants, accountants, and real estate agents must get professional indemnity insurance.
Real Estate Businesses
Real estate agents spend a lot of time on the road, so their Commercial Auto Insurance must often be adapted to their work habits. Employment Practices Liability Insurance is also usually used to protect from employees suing for wrongful terminations, etc.
Motor Vehicle Insurance for Business
All commercial vehicles used for business purposes must also be insured, whether trucks or cars used by employees to visit clients.
As with personal automobile insurance coverage, there are many options, some more pertinent to businesses, including driver repatriation, key replacement, etc.
Federal Insurance Requirements
Separately, the federal government requires business owners to secure workers’ compensation, disability, and unemployment insurance coverages. In some states, additional business insurance is separately required by law.
These are the Federal insurance requirements every U.S. business owner must meet:
Workers’ Compensation and Disability Insurance
Any employee suffering from a job-related illness or injury needs financial support. This is paid by workers’ compensation insurance, covering them for income loss and medical costs.
Business Unemployment Insurance covers compensation for workers who lose their job through no fault of their own.
Small Business Owners Have Options
As a small business owner, you work hard to ensure your business’s success. Securing the right insurance coverage for your business’s survival in case of a disaster is critical. Rely on a quality insurance broker to advise you.
When you find yourself without sufficient coverage to allow your business to continue operating, you are not out of options.
BorrowPartner provides small businesses with simple, flexible, and affordable access to capital, your small business loans, business lines of credit, and merchant advances, all customized to your business needs.