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How To Get Insurance For Your Small Business

At the very beginning of this discussion, it is important to understand that insuring your company is an extremely important requirement, regardless of its size. As far as small business insurance is concerned, it can provide your business with the necessary protection against the devastating expenses of property damage and liability claims. In recent years, liability claims against small businesses have become increasingly commonplace. By choosing the right small business insurance, the cost of these claims can be covered by the business. This is particularly important for small businesses because unlike large corporations, a small business may not have the funds to pay for these claims out of their operating budget.

Small Business Insurance Policy Coverage:

A small business policy provides coverage for a wide range of hazards the business may face. Some of these include workplace injuries, liability claims, income loss, costly property damage, and even data breach. As your business evolves, it is important that it is well protected by an array of coverage. It is perfectly alright to get started with a General Liability policy. However, as more employees join your company, Workers’ Compensation Coverage may become a necessity for you. As the company continues to grow, you may need a policy that provides coverage against more complex liability claims.

  1. General Liability Insurance: Protects against third party bodily injury, third party property damage, and advertising injury claims.
  2. Business Income Insurance: Replacement of lost income in case the business is not able to operate because of a property loss covered by the policy.
  3. Data Breach Coverage: Covers data breach cost for identity protection solutions, legal fees, public relations, etc.
  4. Commercial Property Insurance: Coverage against business property damage resulting from covered incidents such as a thunderstorm or fire.
  5. Professional Liability Insurance: Coverage of costs for claims made by a client or customer related to the business’ professional service.
  6. Commercial Auto Insurance: Covers the cost in instances where an employee or the owner of the business gets involved in a car accident for the purpose of work.
  7. Worker’s Compensation: Provides benefits to workers facing illness or injury at work. It also covers benefits to the beneficiaries of a deceased employee that passed away due to work-related illness or injury.
  8. Business Owner’s Policy: This is one convenient policy that combines Business Income Insurance, Commercial Property Insurance, and General Liability.

Do I Need an Expert?

It is always a good idea to seek help from an insurance expert to assess the risks encountered by your business and determine your coverage requirements accurately. The expert can also help you figure out the level of coverages you require and can afford based on your business’ financial state.

Step by Step Buying Guide:

Purchasing small business insurance has become much easier these days with the advent of numerous online services. Within a day or two, it is possible now to conduct research, discuss with experts, opt for coverages, receive a quote, and complete the purchase.

Mentioned below are some quick steps to go about this process.

  1. Gather all important business-related documents such as gross annual sales, business location, total payroll size, number of employees, list of tools and equipment, types of furniture, other business assets, age of the building, etc.
  2. Search online and find out a reputable broker specializing in insurance for small businesses.
  3. Along with the insurance expert, review your business and determine its business needs.
  4. Evaluate different options of coverage and select the policy that is right for you.

Breathe easy now as you have done the needful by tailoring an insurance policy that covers all the unique needs of your small business.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.

By Sheena Jordan
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