Managing a small business seems like a million things to do all the time. You have to increase sales, maintain financial stability and closely monitor your staff.
Sometimes, taking out business insurance can be overlooked. However, authorities say it can be a crucial mistake. Jacquelyn Bishop of GEICO’s commercial insurance division says, “It’s dangerous for any business to lack basic coverage.”
What is the best insurance for a small business?
General liability insurance is advised for most small businesses. You may also need workers’ compensation, commercial auto, and professional liability insurance depending on your specific circumstances.
The most important thing for all small business owners would be first to take out general liability insurance that will cover any property damage or injuries to persons related to your business, including the infamous “slip and fall.”
It will cover injury-related legal costs, medical expenses, and any damage you unintentionally do to the rented property. So the type of protection you need depends on the size and character of your business.
The government usually requires workers’ compensation insurance for businesses with employees. Keep in mind that cyber disasters are becoming more frequent, and hackers are becoming more strategic.
Cyber liability insurance gives you the protection you need to keep your business and your company’s data safe. Commercial auto insurance is necessary if your company owns a fleet of vehicles. Using your car to move goods or people may also be required.
Coverage you will have with business insurance
Commercial insurance can cover numerous aspects. It can range from basic to comprehensive, so choose a level of protection sufficient for your assets, employees, and business operations.
Typical elements of a business that insurance can cover and protect from the moment the contract is taken out are:
- The lives of the company’s officers
- The life of key personnel
- The life of a group of employees
- The short and long-term disabilities of owners and employees
- Owners’ and employees’ liability for injuries
- Property and casualty insurance of buildings and machinery
- Commercial transportation property damage and liability
- Products liability
- Insurance coverage for illness and injury to employees
- Compensation for wages lost as a result of an on-the-job injury
The value of small business insurance
Your monthly rates depend on the commercial insurance policy you select. The average monthly premium for general liability insurance is $65, and workers’ compensation is $111.
A business owner’s policy, which combines liability and property coverage in one contract, is what some business owners choose to get. A business owner’s policy typically costs $101 per month.
The type of business is another element that influences the amount you pay each month. For example, builders pay significantly more for business insurance than accountants. The cause of the increase is related to workplace hazards.
Running a construction company carries a higher risk of potential damage and injury than running a small accounting firm. Another factor that influences costs is the size of the business or the number of employees the firm has.
The monthly premium increases because each employee increases the risk to the firm. The cost is also affected by the amounts of coverage. It will be more expensive the larger the coverage is.
A higher deductible is a way to reduce the price if you select a higher level of coverage, which is the amount of money you pay out of pocket before the insurer pays for a covered loss.
A lower risk elevation can result in lower monthly rates. The deductible levels offered by insurance companies range from a few hundred dollars to thousands.