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Thursday, November 26, 2020

These Are the Different Types of Small Business Insurance


To run a successful and thriving business, you need to insure it. Insuring your business gives you peace of mind as you’re covered in case of any uncertainties. You must know that your business is exposed to various risks right from the day it opens its doors.

Having business insurance will determine either success or failure of your business during a crisis. According to research, 44% of small businesses operate without insurance for up to a year. This exposes them to various risks that can cause losses.

You need to understand the types of small business insurance to know where to start when you decide to take one. Let’s have a look at the options available for you as a small business owner.

General Liability Insurance

General liability insurance protects all the company assets against getting sued by a third party. The insurance helps cover legal costs and any award or settlement that the court may impose.

The general liability insurance will cover you from claims that result from different business activities or operations. These may include property damages, bodily injuries, libel and slander, and false advertising.

The insurance will cover all legal costs, including non-monetary damages, compensatory damages, legal defense costs, and punitive damages. The insurance will cover all the costs, whether filed by a class-action lawsuit or an individual.

Workers’ Compensation Insurance

If you have employees, you should add workers’ compensation insurance to your policy right away. Failure to do this can get you in trouble with the authorities for non-compliance as this is a requirement by law.

Workers’ compensation covers medical treatment, lost wages, disability, or death benefits if an employee is injured at work. Even when your business is not high risk, injuries can still happen to them within your premises.

These can even be slip and fall injuries that can result in a compensation claim. Or, if you’re running a hotel, the insurance may cover your employees against burns or cuts. Talk to PolicySweet to help you with this insurance if you’re running a food shop.

Unemployed Insurance

This is another government required insurance that every small business must have to cover employees in case of job termination. However, this type of insurance is not purchased from an insurance carrier. This is paid as part of state unemployment taxes (SUTA) and federal unemployment taxes (FUTA).

As a business, the amounts you’ll pay as tax for this type of insurance depend on the number of employees. It will also depend on whether you’re new to the business or have been operating for a while. When your employee is out of work, they’re allowed to apply for this type of insurance benefits.

Professional Liability Insurance

Professional liability covers any mistakes that can occur in the professional services that you cover. You or your employees can make this mistake, and it will help protect your finances if such happens.

Errors and omissions insurance will also cover you when your employee gives clients advice that causes them to lose money. The customer can sue the company for such mistakes; hence the insurance comes in handy to pay the legal fees. If you’re in the field of law or medicine, you should get this type of insurance.

Health Insurance

Health insurance provides health insurance or medical cover for employees. If you have less than 50 full-time employees, you should not get group insurance. If you have more than 50 employees, you’ll need to provide them with group health insurance coverage and pay at least 60 percent premiums.

There are strict requirements for this type of insurance. For instance, a business needs to have at least one common-law employee who’s not in any way affiliated with the company. The company must be registered and adhere to state regulations.

Vehicle Insurance

If your business uses company vehicles, you should insure them to protect your business against any liability in case of an accident. You should insure your vehicle against third-party injury. Comprehensive insurance should also cover the vehicle against an accident.

If you have employees who use their vehicles to run business errands such as product delivery, the business vehicle insurance will cover them.

Disability Insurance

This is another government required insurance which pays employees a percentage of their income in case they get into an accident and unable to work. This kind of illness or injury doesn’t have to be work-related to attract this kind of insurance.

An example of people that this insurance can cover is a pregnant woman after they deliver. This insurance can take the form of short-term disability insurance (SDI) for about three to six months after they get injured or fall sick.

There is also long-term disability coverage, which can last until the employee goes back to work. Disability insurance can make you a more competitive employer and give your employees some peace of mind knowing that they’re covered.

Commercial Property Insurance

This insurance covers your business equipment, inventory, and office space against theft, loss, and damage. If you have a brick and mortar business, you must have commercial property insurance. It covers your business against damages cost by fire, theft, vandalism, or weather elements.

Commercial property insurance can cover your business against flooding damage, burst pipes, and accidents. However, they won’t cover natural disasters such as earthquakes. If your business is in a more exposed area to such accidents, you must have additional costs for that.

Protect Yourself With These Types of Small Business Insurance Today!

Make sure you find the right small business insurance to protect your commercial property and the workers. There are several types of small business insurance for entrepreneurs that you can take to protect you from any unforeseen risks.

Know the types of insurance that are government required and those that are necessary depending on your business needs.

If you need more information on finding the right insurance for your business, stay on this website for more insights.



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