How to Assess Insurance for Your Small Business
Small businesses need insurance just as much as any large corporation would. Accidents and unexpected events happen, even if you don’t expect it. When these incidents occur, insurance is there to help protect your business financially. And because every business is unique, your insurance coverage should suit your business’s needs. Here are some considerations to evaluate as you begin to think about the insurance that your small business needs.
Every industry is different. Some industries have more innate physical risk involved, while others may be more prone to digital threats. It’s essential to consider the industry you are in and how those risks can impact your business. For instance, if you are a small software company, you might need more cyber liability coverage. If you own a delivery service, then commercial auto insurance would be important to have. Assessing your industry and the risks involved is a good stop to figuring out what coverage is best for your business.
Do you have employees? How many do you have? How can you keep them safe on the job? These are questions to think about as you shop around for insurance. Your employees are crucial to your company’s success and having the right insurance coverage can help protect them. While having workers comp is required in most states, the amount of coverage can vary. You can also consider various safety precautions, training, and insurance coverage to help ensure their wellbeing.
The Physical Location of Your Business
Your business’s location can affect insurance as well. If you have a physical location, then consider getting commercial property insurance coverage. However, the local climate may also have an impact. For instance, if you are at risk for flooding, then a flood insurance policy could be handy. Perhaps your business is located in areas where earthquakes are common, and you need coverage for that. Some coverages are not included in your general liability coverage, so you may need separate coverage to help protect your small business from those perils.
The Types of Customers
What types of customers do you serve and how can they impact your insurance needs? If you work with clients, then you might consider getting Errors and Omissions insurance. This type of coverage helps pay for lawsuits associated with work mistakes, undelivered services, or negligent services. Meanwhile, if you are a retail business, general liability coverage would be an important coverage to have. Maybe your business is completely digital and you want to make sure that your customer’s online private data is safe. In that case, cyber insurance is worth thinking about.
Talk to An Agent
Talking to an insurance agent is a great way to assess your needs. They can help you figure out the types of insurance coverage you need to help protect your business. There are plenty of options when it comes to small business insurance, and an agent can help you navigate it. From BOP to E&O, these types of coverages can make a huge difference in the event you face a lawsuit.