small business insurance

How Much Insurance Does My Small Business Need?

As a small business owner, getting insurance is just one of the ways to help protect your business. It’s there for when things don’t go according to plan. Even if you are not anticipating anything happening to your business, accidents do happen. Insurance helps protect you financially when that happens. But how much insurance does your small business really need? Sometimes it can be hard to tell. These are some of the most common types of insurance that small businesses have.


Business Owner’s Policy

One of the most common types of policies that small business owners get is a business owner’s policy. Often referred to as a BOP, or business owners policy, thus type of insurance is like a package. It can contain various types of coverage that your small business may want to have. Here are some common types of coverage it can include:

  • Workers Compensation
  • Unemployment
  • Disability Insurance
  • General Liability
  • Professional Liability
  • Commercial Property
  • Commercial Auto

It’s best that you work with your insurance agent to determine the coverages you want in your policy.


Workers Compensation

This type of coverage is important if you have any employees. If they get sick or injured while on the job, it can be devastating. Workers comp helps protect both employees and employers when things go awry. Workers comp helps cover things like medical expenses and lost wages.


General Liability

This is arguably one of the most important types of coverage. It helps to cover claims regarding negligence, bodily injury, and property damage. For example, if a customer walks into your store and slips and gets injured, general liability is there to help cover claims.


Commercial Property

If you have an office or a storefront, commercial property insurance is something to discuss with your agent. If a fire burned down your building or a thief stole your inventory, you could be facing a lot of damage. Commercial property coverage can help cover things like:

  • Equipment
  • Lost Inventory
  • Outdoor Signs
  • Damage to Others’ Property
  • The Building Itself
  • Landscaping
  • Furniture

Commercial Auto

Many small businesses have company vehicles to operate their business. If this is the case, you will need a commercial auto insurance policy. It is similar to your personal auto insurance coverage. Coverage can help cover things including bodily injury, medical expenses, general liability, and comprehensive collision. Many states require commercial auto coverage if you have a company vehicle.


How much coverage is enough?
According to Insureon average annual cost of general liability insurance is $74, working out to about $62 per month. Many small business opt for $1 million or $2 million in coverage limits. But depending on the nature of your company and the industry in which you operate, these figures can vary. Talking to your insurance agent is the best way to figure out the coverage best suited for your small business. Of course, there are ways to reduce the cost of your insurance, such as bundling polices, paying your premium upfront, and reducing your company’s risk. At the end of the day, discussing these things with your agent is the best way to help protect your business.


Talk to an Encharter Insurance agent today about protecting your small business 888.754.8299!


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