Getting insurance is a no-brainer when it comes to running your business. This rule holds true regardless of what kind of business you’re running. The trick is finding solutions that work for you, whether it’s for commercial truck insurance companies or budding e-commerce websites.
Small Business Trends reports that many small business owners are turning to their insurance agents as a source of guidance during these turbulent times. If the current COVID-19 pandemic has taught us anything, it’s that you have to always prepare for the worst and hope for the best.
This article is for those who are scared of getting insurance, deciding what kind of insurance to get, or just want to clarify some misconceptions behind getting insurance. After finishing this post, you’ll be more confident about tackling business insurance head-on and giving your business protection it deserves.
What You Need To Know About Business Insurance
1. Common Myths About Business Insurance
People tend to get caught up with all the financial jargon surrounding insurance that they end up writing it off entirely. With that in mind, let’s start by debunking some common misconceptions about business insurance.
2. My Small Business Doesn’t Need Insurance
We mentioned this in the beginning, but it’s such an important point that it’s worth repeating: every business needs insurance. The benefits of being protected by insurance far outweigh the initial costs of applying for a policy.
3. All Small Businesses Should Avail Of The Same Insurance Policy
There is no one-size-fits-all approach when it comes to insurance, even if it’s just for small businesses. The coverage provided in commercial truck insurance services will be different from ones that cater to content creators, food supplements, and others.
4. Liability Insurance Doesn’t Apply To Those Working From Home
Thought Reach emphasizes that taking out liability insurance is good practice even if you’re running your business from your home. This is because it can protect you from instances where a business partner or courier sustains an injury in your home or you damage a client’s property while working off-site.
5. I Don’t Need To Protect Myself Against Cyberattacks
It’s no secret that small businesses are frequent targets of data breaches, precisely because many hackers know that small business owners adopt a laissez-faire attitude to cybersecurity. Getting cyber insurance helps protect your business in the event of an attack.
Types Of Insurance Policies Available
It’s clear that getting insurance is worth the investment, so the next step is figuring out what kind of insurance policies are available. Some common policies are as follows:
1. General Liability Insurance
Every business needs general liability insurance, whether you’re operating under a warehouse with lots of full-time staff or in a rented space with a small team.
This policy protects your company from potential lawsuits for property damage or bodily harm. You can add this as part of your existing business owner’s policy (BOP).
Since this is one of the most popular insurance policies to take out, you might also run into clients who request that you have it.
2. Professional Liability Insurance
Professional liability insurance covers you in case a client complains that they’ve suffered damages because of your services.
As an example, Princeton University sued an architecture firm for completing a project behind schedule. Representatives from the school alleged that they had to shoulder extra costs due to project delays.
3. Property Insurance
Property insurance can actually cover a range of policies. The Balance lists direct damage insurance, time element coverage, inland marine insurance (for construction companies, landscapers, and the like to protect their off-site property), and crime insurance. This can also be part of your BOP.
4. Business Interruption Insurance
COVID-19 has caused many business owners to file for business interruption insurance. While this policy is meant to replace potential income you’ve lost in the event that business operations have to halt, your policy should specify what kinds of events can and can’t count as an interruption. This is why it pays to shop around for policies first.
5. Worker’s Compensation Insurance
You need to take care of your employees, and worker’s compensation can help do just that. Worker’s comp can cover the medical costs should your employee get a work-related injury, repay most of their wages should they need time off, and the like.
Worker’s comp should be necessary for all businesses, but it’s especially useful for jobs that require lots of manual labor. You’re likely to find some form of worker’s comp in things like commercial truck insurance services and policies made for logistics and delivery companies.
6. Cyber Insurance
Cyber insurance is part and parcel of any good cybersecurity protocol. With hacks getting even more sophisticated by the day, it’s important to be realistic and know that you might still fall victim to a breach despite all the antivirus software present in the world.
Aside from helping cover potential legal fees, cyber insurance policies can help you manage an incident by repairing damaged systems and notifying customers of the breach. This makes it particularly helpful for e-Commerce businesses and digital marketers.
What To Consider When Buying Insurance
Not all insurance policies are created equal, and purchasing insurance is definitely not something you want to jump into. Here are some good guidelines to keep in mind when buying insurance:
- Check if you have any legal obligations to purchase insurance
- Make sure to consider all your options before choosing one
- Study the potential risks that occur within your industry
- Remember that it’s better to overestimate how much coverage you’ll need
- Read through your business insurance policy, then read it again
Once you’re done, you might find that your business’ insurance plans consist of different coverages and policies strung together. This is how it’s supposed to be, as insurance isn’t a one-size-fits-all deal.
Partnering with trusted insurance companies will help you get the coverage you need, no matter your business needs. Whether you’re looking for policies that suit your fashion brand or you’re handling fleet auto insurance companies, working with trusted insurance providers gives you the peace of mind to focus on growing your business.
That’s it for today, we hope you found this article useful! If you have any more questions about getting business insurance, we’ll be more than happy to help! Reach out to us at Assured Standard.
Have anything else to add about business insurance? Let us know in the comments below!