Most small business owners carry standard business insurance policies such as property, liability, and business interruption to protect them from loss. But every small business is unique, which means many of its risks are too. To help you understand potential business exposures and their insurance solutions, here are six small business insurance facts that owners and managers need to know.
- Before we dive in: every small business needs business insurance. It can be a lifeline in difficult times. You may also need proof of current liability insurance coverage to obtain funding or enter into contracts.
You Can Bundle Standard Small Business Insurance Coverages
Bundling your business insurance coverages is a convenient method to keep costs low. A Business Owners Policy (BOP) combines commercial property, business liability, and business interruption coverages into one comprehensive package.
You can customize your BOP with other commercial insurance coverages to protect your business, such as cyber liability, errors and omissions, and umbrella coverage.
- While a BOP is the foundation of your protection, it does not include other important coverages like workers compensation and commercial auto insurance.
Consider Workers Compensation Insurance More Than Insurance
Many states require businesses to have Workers Compensation insurance. It covers medical expenses, a portion of lost wages, and rehabilitation costs for employees who are injured or become ill at work—so you don’t have to pay out of pocket. Workers comp insurance is much more than another business expense.
Your workers compensation insurance carrier may also provide proactive safety services to help keep employees safe and healthy (and your business running smoothly) by reducing the risk of accidents in the first place. If an employee does sustain an injury, Selective offers 24/7 free access to a registered nurse to assist you with treatment options and guide you through the claims process.
Even One Company Car Needs Commercial Auto Insurance
Commercial Auto Insurance probably conjures images of a fleet of company-branded trucks arriving and departing from an industrial warehouse. But commercial auto insurance is necessary for small businesses as well—even those that use one company car or van to transport goods or people.
Property Insurance Covers More Than Buildings
In addition to providing financial protection in the event of loss or damage to buildings and structures, property insurance, when combined with inland marine coverage, can help provide financial protection for loss or damage of physical assets like tools and equipment, personal property, inventory, raw materials, and machinery. Speak with an independent agent about your operations to help ensure that you have the right coverage for your unique business. Without this type of business insurance, you may have to pay for damage, repairs, and replacements out of pocket—which some businesses may not be able to afford.
- Business property insurance typically covers common causes of loss such as fire or lightning, explosion, theft or vandalism, water damage (except for flood), windstorms, smoke, and sinkholes.
Cyber Insurance Should Be On Your Radar
The pandemic forced many companies to adapt their operations and move more of their business online—and made them easier targets for cybercriminals. In fact, according to a studies, only 20% of small businesses carry cyber insurance though more than 28% of cyber attacks target small businesses.
Even companies with a small digital profile must take proactive steps to protect business and customer data from ransomware, phishing attacks, and data breaches. To protect against this growing cyber threat, Cyber Liability Insurance offers comprehensive protection for financial liability due to a cybercrime.
Independent Insurance Agents Are Allies
Today, you can get a business insurance policy online with a few taps on your phone. But whether it is the right protection for your unique needs (because even businesses that provide similar services in the same industry can have drastically different risks) is uncertain. The solution? Working with an independent insurance agent.
An independent agent in your area can work with you to assess your business, advise a course of action, and develop a custom policy for your small business. They will be there to adjust your policy as your business changes and grows. And they can apprise you of changes in the market or even your industry—and the proper response to them for your business.
- Independent agents have access to multiple insurance carriers and can offer their clients more options. Among the many benefits of working with an independent agent are responsiveness, support throughout the claims process, customized solutions, and more.
The Bottom Line
You worked hard to build your business. Now it’s time to protect it.
Take a moment. Consider the points above. Have you protected your business against as many known risks as you can? Are you aware of previously unknown exposures? What are your next steps?
Talk to a local independent agent today about a workplace assessment to identify coverage needs. Trust the experts at MIG to deliver unique insurance solutions that can protect your business and help you grow it.