There’s a lot to learn when you’re starting a small business. Insurance is one area where small business owners often feel overwhelmed. You may be faced with meeting legal requirements, questions about which products you actually need and confusion over how to choose a policy. It’s a lot to learn, and you want to get it right.
We’ve put together this guide to educate small business owners like yourself about the products available and to help you choose the best policies to support your new enterprise.
What is business insurance, and why do I need it?
Business insurance describes different types of insurance products designed to protect businesses. These products help protect your business from common risks that may occur as you go about your work.
Like any type of insurance, business insurance creates a financial safety net for the insured. Without it, you could be financially responsible when things go wrong. This might put a strain on your business, especially if budgets and profit margins are thin. Business insurance can provide financial support, so you’re not left out of pocket.
What does business insurance cover?
Business insurance covers many of the risks that small businesses face every day. These include things such as employee and third-party injuries, allegations of negligence and other reputational damage, and different types of property damage.
However, there is no one policy that will cover all the possible risks that your business may face. Different insurance products are available to address the variety of risks. Together these policies can help create a safety net to protect your business.
What types of business insurance do I need?
Every business is different. The types of insurance you need will depend on your business’ structure, the work you do, and other factors that make your business unique.
However, there are insurance products that many small businesses in different industries have. These include:
- Professional Liability insurance can protect professional service providers from potentially devastating financial damages resulting from alleged negligence or error in the delivery of your services.
- Workers’ Compensation insurance provides benefits to your employees when they make a claim against your workplace for injury or illness.
- General Liability insurance protects businesses against the risk of customer injury and property damage.
- A Business Owner’s Policy (BOP) is a combination of policies, combining covers such as general liability insurance and business personal property coverage, to help protect small businesses from costly interruptions to service.
Deciding which business insurance products you need is often confusing to new small business owners. Answering some questions about your business may help:
- Do you have employees (or plan to hire some)?
- Do you (or your employees) offer professional advice or represent your clients’ interests on their behalf?
- Do clients or customers visit your place of business?
- Do you (or your employees) visit clients or customers in their homes, places of business, or another location?
How much does business insurance cost?
The cost of business insurance policies will vary. Premiums (the amount you pay for a policy) are determined using many factors depending on the type of policy and coverage offered. You may be asked details about your occupation, payroll size, business location(s), and claims history, among other things.
Comparing policies from different insurers can help you find the best price for your different coverages. BizInsure makes it quick and easy to do this, offering multiple quotes for multiple products with just one data entry.
You can also save by bundling certain types of cover into one policy. A Business Owner’s Policy (BOP) is a convenient package of insurance that protects your business against the common risks it faces every day. The BOP product includes various coverages that may suit the unique requirements of your small business. Insurance included in a BOP can vary but usually they include protection for typical small business risks such as property damage, business interruption and liability.
Find business insurance now
Business insurance is an important part of protecting your new business. While getting insured may feel like just another item to tick off your start up to-do list, business insurance can be a great investment in your business’ future. The right policies can create a safety net to help set you up for financial success as your business grows and thrives.
If you’re ready to protect your small business, Start comparing business insurance products from top insurers.