So, you’ve decided to start your own business. That’s great! Becoming your own boss can be extremely rewarding, and it can eventually propel you to new heights. Naturally, reaching your business goals is a top priority. While this is a great accomplishment, it’s important to remember to find ways to protect your business, assets, and all the services or products you intend to provide when you make your big debut. Whether you are a seasoned business owner or if you are just starting, you’ll need insurance. If you own a business, and this business is still on the smaller side, keep reading below for more insurance information for small business owners.
Why Do I Need Small Business Insurance And What Is It?
You need small business insurance if your company qualifies as small, and that’s just a simple answer. Many online guidebooks and business resource websites will tell you that a business with 50 employees or less is considered a small business. There are insurance bundles that are specifically designed to cater to companies that register as such. You won’t need an insurance plan meant to cover a large corporation. Some of the additional text or requirements won’t apply to your endeavor, so insurance for small business owners exists. Things like damage expenses, lawsuits, workers’ compensation, natural disasters, and the like will be included within these contracts.
Why Are There Different Types of Small Business Insurance?
Different types of small business insurance exist because every business is unique. For instance, it’s more likely for a business owner who lives in an area that experiences tropical storms to have coverage for natural disasters than for a business owner who lives in a place that doesn’t share severe weather patterns. It’s entirely up to you if you want to include this in your contract regardless of where you’re located. The goal of business insurance is to protect your company and all the property that comes with it, including your income. This is true because an insurance package can also protect you from both internal and external liability claims. You can select several different coverage types as they fit into your needs. Below is a list of some common insurance products.
- Workers' compensation insurance
- General liability insurance
- Commercial property insurance
- Business income insurance
- Commercial auto insurance
- Professional liability insurance - Errors & omissions (E&O)
- Employment practices liability insurance (EPLI)
- Management liability insurance
- Cyber liability insurance
- Data breach insurance
Will I Ever Need To Upgrade My Insurance Plan?
The short answer is yes. If your business begins to grow, you’ll want to make the necessary adjustments to ensure everything is still adequately covered. Maybe you’re able to hire more employees, and perhaps you’re relocating or expanding at your current location. Whatever the case may be, you should be prepared to adjust your insurance coverage according to your business’s growth and expansion. Many insurance companies will provide you with an insurance quote before you accept a package. You should take full advantage of this quote because the company can assist you with understanding the new risks your business may face as it ages and changes. Don’t be intimidated if your business insurance changes drastically. Chances are, these additions are necessary and are put in place to protect your company.
Is Small Business Insurance Costly?
Not necessarily. When you first begin your endeavor, you won’t need a significant amount of coverage, especially if you’re the only employee, to start with, and you’re able to handle operations on your own. This is why small business insurance offerings are so diverse. They’re meant to cover a range of needs for small business owners. Just keep in mind, if you plan to hire other people or if you do business predominately online, it is wise to look into insurance for small business owners.
Is There A Foundational Grouping of Insurance For Small Business Owners?
Absolutely. Many small business owners will commonly accept business income insurance, general liability, and business property insurance. These are the most frequently used and can be considered the holy grail for insurance bundles. Together, these three policies create a standard level of protection for a range of business needs. Remember, you can tailor your business insurance according to what your endeavor requires. Don’t hesitate to communicate with your insurance company of choice and explain your vision so that it complies with your endeavor.
Owning a small business is very exciting, but it is also a lot of work. For many, working for oneself is a passion. To keep that passion alive, it's essential to keep it protected in every way possible. Obtaining business insurance is crucial. It can save you a lot of time, hassle, and money in the long run if you take the necessary steps and precautions to protect yourself and your business as quickly and efficiently as possible.
Eventually, your business will require more help. This is where employees come in! You've worked so hard to create a dream from the ground up, and now you're deciding to include a host of new faces. This can be nerve-racking, but it can also be pleasant, fun, and memorable. If you want to ensure all of your new employees remain up to speed and aware of their duties, you can always create a small business employee handbook. In it, you can include any number of policies that assist your workers in upholding the same quality of work ethic you put into your business before anyone else was working alongside you.
Now that you have a better understanding of small business insurance benefits and more information on creating an employee handbook, you're one step closer to greatness. If you are still looking for answers, or need a bit more guidance regarding your business, get a free business report that will show you how your business is performing online against your competition.