Does My Company Need Small Business Insurance?
If you’re a small business owner, you know the benefits of working for yourself and taking care of those you serve. However, just because your company is small does not mean you can skimp on adequate protection.
Running a company of your own means you must consider your small business insurance needs. It’s important to have protection in case an accident occurs, your company gets sued, or you run into other problems.
This breakdown can help you to better understand the types of small business insurance out on the market and which ones are best suited to meet the needs of your business.
What Kind of Small Business Insurance Needs Do Most Companies Have?
The type of coverage your company needs depends on several factors. To understand what insurance plans you should look for, consider the answers to these questions:
- Does my company offer goods or services?
- Do I have a storefront for customers or is everything handled remotely?
- Do I drive to deliver goods to the customers?
- How are mistakes handled?
- What happens if a customer’s data is hacked?
For all of these questions, there is at least one form of insurance that can help protect your business in a variety of situations.
Types of Small Business Insurance
Depending on your small business insurance needs, you likely should get multiple forms of coverage. This can get confusing if you aren’t sure what type of coverage to choose or what it can do to keep your business safe.
Check out what is generally covered under the insurance and what you should keep in mind when purchasing it.
General Liability Insurance
General liability insurance is essential if you have a storefront or office that customers, employees, or both enter or use. If someone other than an employee is hurt in an accident or another incident that involves bodily injury, general liability insurance can protect your business in the event that you get sued. This also applies to someone getting hurt by any products, services, or other parts of your operation.
It’s useful to talk with an insurance agent about how much coverage you could benefit from based on your type of business and its unique needs. That way you aren’t underprepared in case something happens.
Professional Liability Insurance
Professional liability coverage protects you and any of your employees in case they get sued over a mistake. For example, if a legal assistant does not review a business contract and causes the client to lose money in a business deal, they, along with other members of the law firm, could be sued. Having insurance in place can protect the law firm from any damages they could face.
Even if your company is part of an entirely different industry, the same idea still applies. Professional liability coverage can help ensure that you are able to run your business as normal in the event of a suit.
Commercial Auto Insurance
If your company deals with cars, transportation of goods or people, or anything else that requires transportation, then having commercial auto insurance is a must. This coverage protects against physical damage and different types of vehicle-related liability situations that your company could find itself in. It is especially important to protect yourself and those who work for you in case an accident occurs during transportation.
When choosing this type of insurance, you’ll need to figure out how much you’ll need based on your business, employees, and the number of vehicles in your fleet. Insurance brokers like Acrisure can help you with this step.
Product Liability Insurance
Having product liability insurance is important if you sell a product that your consumers use, and there is an issue that occurs with the product. Perhaps it breaks, causes injury, or otherwise damages something that your customer uses, such as a floor cleaner ruining their floor. Consumers might misinterpret how a product is marketed, use the product for some other purposes that were not part of a disclaimer, and choose to sue.
By having this type of coverage on hand, you can protect your business regardless of what happens.
Data Breach Insurance
Data breaches are frequently publicized in the news, and while you normally see them mentioned in relation to large companies, they can happen to small businesses, too. Depending on the type of attack that happens, this could cause great financial loss for your company and even force you to go out of business if you are not prepared.
Data breach insurance is helpful if you store customer information, accept credit card payments, or have other factors that could cause you to be a target of hackers or other cybercriminals. Keeping your company as safe as possible can help your customers trust you and continue to do business with you, too.
Commercial Umbrella Insurance
A commercial umbrella policy can handle a variety of additional problems not covered by the other insurance types. Commercial umbrella insurance provides coverage that goes further than a regular business insurance policy, and it can be useful to have in high-risk situations or if you’re worried about the current limit of your other policies being maxed out.
Keep in mind that commercial umbrella coverage is not stand-alone; you’ll need to have other insurance policies, such as general liability or professional liability, before using it. It can give you peace of mind if you are worried about an intense situation, though.
What Business Insurance Does Your Company Need?
Make sure you evaluate what your current business looks like and what you require to safely operate when considering your small business insurance needs. The appropriate coverage ensures that you and your company are safe in a variety of different situations and can protect you in case of being sued or other potential problems.
Getting the Right Protection for Your Small Business
If you need help finding the right coverage for your small business insurance needs, want to discuss different types of business insurance, or are looking for other insurance-related guidance, Acrisure is here to help you succeed. Contact us today and find out how you can get the coverage that is best for your company.
Important Information:
For additional information, please visit our website at Acrisure.com. Products or services identified herein may not be available in all jurisdictions. The information and descriptions contained herein (a) are not necessarily intended to be complete descriptions of all applicable terms, conditions, and exclusions of the policies referenced, (b) are provided solely for general informational purposes, and (c) should not be viewed as a substitute for legal, regulatory, or other advice on any particular issue or for any particular reason. The advice of a professional should always be obtained before purchasing any insurance product or service, and you should not rely on the information provided herein for the prevention or mitigation of risks or as a full and complete explanation of coverage under any insurance policy. While the information contained herein has been compiled from sources believed to be reliable, no warranty, guarantee, or representation, either expressed or implied, is made as to the correctness or sufficiency of any representation contained herein.
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American Public Entity Programs, LLC are public sector insurance professionals specializing in the underwriting, risk management, and marketing for public entity risks. We are a strategic trading partner of Acrisure and have been designated as a double Acrisure Circle of Excellence wholesale broker. For more information, visit https://americanpublicentity.com/
Source: https://www.acrisure.com/news-and-insights/small-business-insurance-needs