Most important insurance policies for small businesses

Insurance policies for small businesses

Insurance policies for small businesses

As we all know anything can happen tomorrow no one knows the exact thing the future holds, tomorrow is unpredictable so as a small business owner there is a great need for you to protect your business with insurance policies against any odd circumstances that may occur to your business, read more as we discuss those insurance policies for small businesses.

Meaning of small business insurance policies

This may be referred to as a legal dealing and agreement between a small business owner and the insurance company where the business owner will purchase the type of insurance coverage needed for his business.

Types of small business insurance policies

Small business insurance policies are of many types 

They include the following

  • General liability insurance for small business
  • Commercial Auto insurance
  • Business interruption insurance
  • Workers compensation insurance
  • Home-built business insurance etc.

Let’s explain these insurance policies in detail for easy understanding.

General liability insurance for small business

This type of insurance coverage will protect your business from any sort of property damage to others.

For example, when someone or a company sues your business for damaging their property your insurance company will take care of the damages while you relax without spending your personal or business money on the damages.

The following types of people always register for general liability insurance

Business clients

Landlady’s and landlords

Commercial Auto insurance

Bear in mind that commercial Auto insurance is different from personal Auto insurance, personal Auto insurance will only protect your car(s) from any accident, and pay for repairing costs or damages it faces.

But it can not handle damages from your business cars or trucks

 it is only commercial Auto insurance that will handle those damages from your business trucks or cars.

Maybe your business car is involved in a fire accident the insurance company will replace a new car for your business or if your business car has some engine breakdown your insurance company will bear your expenses. Insurance policies for small businesses

The category of people who may need this type of insurance are those whose businesses require a car or truck for the distribution of their goods.

They include

  • table water distribution company
  • Beverage company
  • Soft drinks company etc.

Business interruption insurance

Business interruption insurance will make sure they pay for any sudden losses or challenges your business faces, this might be a natural disaster like a flood destroying your goods or any other thing that interrupted your business progress.

Workers compensation insurance

Is a type of insurance that will take care of your workers’ issues and challenges.

As a small business owner if one of your workers falls sick or is involved in an accident neither your worker nor you will take care of it financially.

Your insurance company will pay for the hospital bill and see the worker through until he or she fully recovers and goes back to work.

This is one of the insurance policies for small business it will help your business to avoid unplanned expenses that may affect the business.

Home-built business insurance

As a small business owner if you are operating your business right from your home and you purchased home-built business insurance.

 they will pay for any damages that occurred to the place where you run the business.

Maybe you need to decorate the place or fire destroyed the place your insurance company will take care of it. 

This is one of the best insurance policies for small businesses

Cost of small business insurance

  • General liability insurance $42 monthly payment
  • Commercial Auto insurance $142 monthly payment
  • Business interruption insurance $60- $100
  • Workers compensation insurance $47 monthly payment
  • Home-built business insurance $50 monthly payment etc.

Small business insurance is not that costly when compared to large business insurance.

They are easy to afford although their prices range depending on the type of insurance chosen.

The prices we listed may not be exactly what you will get from your chosen insurance company but it will come closer to it.

Tips on selecting the right insurance for your small business

These tips will guide you properly so that you can choose the best insurance policy for your small business without making any mistakes.

They are:

Choose the most important insurance: as a small business owner that has workers who deliver goods to your customers with trucks or buses you might consider purchasing for Auto commercial insurance to protect your car.

Also if you are advertising company general liability insurance which will cover your company from any personal or company that may sue your company for copyright infringements, if this occurs your insurance company will be the one to pay for any payment involved in the matter.

Choose the one your business can afford: all these insurance policies for businesses are helpful but as a small business owner you have to select from the one you can be able to pay for every month.

Don’t choose from those with higher prices which will make your business suffer when you pay from it monthly to your insurance company.

Insurance policies for small businesses

Understand the particular insurance fully: before making any insurance selection for your small business make sure you thoroughly understand what that particular insurance is all about or what it covers.

If you choose wrongly and a problem occurs to your business your insurance company will not be able to help because that does not include what they provide according to the type of insurance you selected.

For instance, general liability insurance instead of Auto commercial insurance, if your business car gets fault your insurance company will not respond to it because it is not related to the type of insurance you choose.

Seek for business partner’s opinion

Go to those business partners that are members of an insurance company, ask them their opinions concerning that particular insurance company 

They will tell you how it Operates if you are comfortable with it then you can go for it.

Do small businesses need insurance?

Yes, As a small business owner, you need to have insurance that will cover you when an unexpected situation comes your way.

Eg. If your small business was destroyed by a flood or it caught up with fire your insurance company will help you to stand again.

But if you don’t have any insurance you will have to cover everything all by yourself alone, this is why you need insurance although I’m not saying your business will face difficulty in the future but again no one knows what tomorrow will bring.

It is better to stay prepared for tomorrow.

Is not having business insurance illegal?

Not having insurance for your business is not illegal, it’s not by force to get insurance for your business and it won’t be illegal for not having insurance for your business.

If you feel like you don’t want to get such nothing will happen, if you also wish to get one for your business it will be one of the best decisions you are making for your business.

In all, not having business insurance is not illegal.

Wrapping up

Haven listed some of the Insurance policies for small businesses make your right choice by buying those necessarily needed for the progression of your small business

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