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Covering Your Small Business

Covering Your Small Business

What should I be covered for?

Small businesses are everywhere, and the number of them just keeps on growing. Over the course of the past year, many people have been getting very creative and crafty, which leads to discovering a passion and even running a small business. People are always encouraged to support small businesses and brands, especially during the COVID-19 pandemic, there’s been extra encouragement for people to support their local, and small, businesses. As fun as it is to be bold and begin running your own small business, you need to ensure that your business is protected and fully covered.

What type of coverage do I need?

Every business needs to have general liability, as well as commercial property, which can be combined into a business owner policy (BOP) or commercial package policy. General liability will protect your business in the case of a lawsuit; every business faces lawsuits at some point in time, no matter how much you do to mitigate risk. This includes situations like if a customer were to get injured on the business premises, or if an employee damages a customer’s property. Commercial property covers you in case a customer damages your property, so this will prevent you from having to pay out of pocket to replace anything. Typically, commercial property is required when you take a loan out to buy the business property.

Depending on the size of your business and what type of small business it is, there are other types of coverage you may want to consider as well. For example Workers Compensation Insurance is required in by law even if you have 1 part time employee. Another example, commercial auto is something you’d need if you want to obtain a company car for you or your employees to drive. Another very important policy to consider, since the world of online shopping is so vast, and if your business is collecting personal shopper information, is Cyber Liability; when doing business online, this protects your customer’s credit card info, addresses, and any other personal data. Depending on the size of your business and number of employees, you could acquire management liability. This would protect you in case a manager working under you wrongfully terminates someone of their regular position or takes discriminatory action. Finally, considering the commercial umbrella, which would cover you in the case that you reach your policy limits, then you don’t have to pay any difference out of pocket.

Saving Money on your Insurance Policy

Getting your small business up and running can be very costly, and no one wants to have to spend more money than they actually have to. Controlling your spending by buying lower policy limits is not the way to do it, because this will leave you paying what your insurance doesn’t cover out of your pocket. You want your policies to be set appropriately for the industry your business is a part of. It’s also important to remember to not aim for a higher deductible, because you would have to pay the deductible before your benefits kick in.

The smartest, and best way to control costs as a business owner is by shopping around and comparing quotes. Compare policies that are similar to each other, with close to the same amount of coverage; you don’t want pay less and not receive the coverage you need. Try bundling policies, as purchasing multiple policies from the same provider can result in discounts for each policy you buy. You might also want to consider developing a risk management strategy, because the costs of some insurance policies are determined by the steps you take in an attempt to manage risk. This could be as simple as installing security cameras, to reduce the risk of getting robbed or keeping everything up to code to reduce liability risks.

Without the Small Business Insurance, there is no Small Biz

Without small business insurance, chances are there is no small business. It’s nearly impossible to run a business without some sort of accident, natural disaster, or lawsuit. Plus, if you ever want to sign a commercial lease for your business to grow, your landlord will more than likely require you to obtain certain policies. Failing to acquire these insurance policies is going to severely limit the growth allowed for your business. Especially if you want to partner with other brands, they will want to make sure they’re covered in case anything goes wrong. So, protect your business, especially if you want to grow your business successfully and safely. Get started with comprehensive coverage for your business by visiting us at