Whether you are planning to start a business or are currently establishing the foundation of a new one, small business insurance can help you secure the future of your venture. Starting a business is a significant financial investment, which is why you should devote all of your resources to protecting it. Small business insurance can protect your venture from a complete shutdown if a disaster occurs.
Here is a guide to help you protect your small business with the right insurance policy.
Small Business Guide to Commercial Insurance
You have to navigate many risks and challenges as you operate your business every day. You have to oversee your equipment, furniture, supplies, and inventory. Business insurance covers you if something goes wrong. Perhaps your building is damaged due to a fire, explosion, or extreme weather. Someone may also try to vandalize your property or steal your inventory. The right small business insurance policy will protect you against such catastrophes.
Once you start researching business insurance, make sure to contact a licensed broker who has a track record of providing excellent service. When you set up a meeting, the broker will ask you for more information regarding the type of business you have and the industry you work in. If you have an existing policy, the broker will review it. They will check to see if you have any gaps or errors in your policy. The goal is to help you find the best coverage for your unique business needs.
Types of Small Business Insurance Policy
Business Owners Policy
A Business Owners Policy provides property, liability, and business interruption coverage under one policy. As a small business owner, this is an efficient way to add multiple coverages at once. Keep in mind that most Business Owner Policies have strict guidelines that you must follow.
Liability coverage is an important part of your business insurance policy. Commercial auto liability coverage protects your vehicle in multiple ways. Premises liability coverage protects your business if someone gets injured on your property. Product liability coverage protects you if someone gets injured from trying one of your products. If you perform work on a contract basis, you are covered if damages occur as a result of your completed work
Workers’ compensation protects your business if any of your employees are injured on the job. The injured employee receives benefits, which prevents your business from dealing with a potential lawsuit.
Umbrella insurance covers your business when you are dealing with a serious liability issue and are at risk of exceeding your policy limits. It can also fill in your coverage gaps to help you avoid potentially huge financial losses.
Guide to Property Insurance For Businesses
Regardless of the type of business you have, you must protect your base. Whether you operate your business in a large building or an office, accidents can happen at any time. Property insurance prevents you from suffering huge losses by covering your business if your office or building is damaged, vandalized, or completely destroyed.
Commercial property covers all of the personal items used to operate your business. All of your equipment, supplies, furniture, and inventory are covered if they are damaged due to a natural disaster or extreme weather. You can amend your policy to cover exterior parts of your property, such as the fence or any landscaping, if they are damaged. Because your business may have a limited budget, you must try to minimize potential risks. Commercial property insurance covers you if an unforeseen issue arises. You also risk damaging the reputation of your business if you don’t have the necessary coverage in place.
You’ll still have to add extra coverage to supplement your commercial property insurance policy in the event of an emergency. For example, you’ll need flood insurance to cover your business if your building or inventory is damaged due to heavy flooding. In the unfortunate event of an earthquake, you will also need coverage to protect your business. You can also amend your policy to cover you against the natural erosion of your inventory and building. Business interruption coverage protects your business if you are unable to operate due to a power outage or another type of natural disaster.
What Does a Commercial Property Insurance Policy Cover?
Commercial property insurance covers any buildings that you use to operate your business. This also includes any equipment and other fixtures. The personal property of others that is stored at your business is also covered.
Commercial Property Insurance Quote
You want to find a policy that fully covers your business in the event of a disaster. On average, a commercial policy will cost you around $2500 annually. You may have to pay a little more to include coverage for disasters such as wind, water damage, and fire damage.
Who Needs Commercial Property Insurance Coverage?
If you own commercial property, you need coverage. If you have a work from home business, you will still need commercial coverage for your property. You will also need coverage if you lease some space to other parties.
Commercial property insurance policies are considered complex because there are so many layers to them. Relying on a guide to small business insurance can help you make the right decision. If you have additional questions about business insurance, contact the experts at First Insurance Solutions today. We are eager to help you with all of your coverage needs.