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What You Need to Know About Small Business Insurance

small business insurance

Every entrepreneur and the business proprietor needs to be prepared for anything that comes their way. Accidents, Acts of God, corporate malfeasance, and other indiscretions can occur at a moment’s notice.

Even the self-employed, who may feel that they do not need to take out insurance, maybe left vulnerable at the end of the day. Insurance serves as a contingency plan for a possible worst-case scenario.

It provides peace of mind, allowing you to focus on growing your small business. It will also help keep your most valuable assets, which includes your employees, protected. Here, our focus will be on what you need to know about small business insurance.

What type of small business insurance do you need?

General liability insurance: If someone on your business property is injured due to an accident, then public liability insurance may protect your business from litigation. General liability insurance is also known as slip and fall insurance.

Errors and omissions insurance: If someone accuses you of being negligent or making a mistake, then your errors and omissions insurance may cover the expenses needed to rectify the issue or protect your legal fees.

Cyber liability insurance: This type of insurance is designed to protect you from cyberattacks, such as ransomware. If you become the victim of a cyber attack, your cyber liability insurance may cover the expenses needed to help your business recover from stolen data.

Commercial property insurance: If you work from home and only have a basic home insurance policy, you may not be covered if your business supplies were damaged in a flood or fire. Commercial property insurance is designed to help protect those with physical stores and the self-employed.

Commercial auto insurance: If you need to drive to meet clients, deliver products, and/or perform on-site assessments, then you may not be covered by your personal auto insurance policy if your car were to become damaged due to a business-related trip.

Equipment breakdown insurance: If you need protection from financial losses that stem from an accident to pressure, electrical, and mechanical objects, then equipment breakdown insurance can help.

The type of insurance you need will depend on the kind of sole proprietorship that you currently operate, the services you provide, the products you sell, and your day-to-day operations.

There are also many other types of insurance that you may want to consider if you run a small business, including, but not limited to, health insurance, life insurance, renter’s insurance, and disability insurance.

Should I pay my small business insurance premium monthly or annually?

You can pay your small business insurance premium monthly, so you won’t be required to pay a lump sum payment, which may be too much for a startup business. Paying each month may also make it easier to create a budget.

As for paying once a year, it may be the better route if you can afford to pay a lump sum. Then, for example, you won’t have to worry about missing any payments, which means you won’t have to worry about late charges either.

In addition, you will have peace of mind knowing Who will protect your business for at least 365 days.

If you would like to learn more about small business insurance premiums, please speak to a financial insurance advisor.

Things to Do Before Renewing Your Small Business Insurance Policy

First, you need to determine if marked changes to your services and inventory.

For instance, if you have augmented the number of products in your storage facility, or have added new items to your product line, then you may want to consider obtaining product liability insurance coverage.

Or, perhaps you have started making home deliveries to some of your customers due to the ongoing pandemic. In such a scenario, obtaining a commercial auto policy makes sound business sense.

Moreover, if you have recently relocated your small business, you may also want to consider going over your small business insurance policy. Your monthly or annual premium may go down if you have moved to a smaller and safer facility with additional security protocols in place.

Furthermore, you need to go over your business proceedings with your broker to formulate a strategic risk assessment of your business. From liability and workplace safety to natural disasters and cyberattacks, obtain peace of mind by protecting against any risks that your enterprise may face in the future.

In addition, if you have made recent upgrades to your security measures, you should notify your insurance provider as soon as possible. Any improvement, however slight, may allow you to enjoy a reduction in your monthly or annual insurance premium.

Claims are also something to take into account. Filing a claim will be the first step you will need to take to help your business recover after a financial loss or setback, so evaluating the claims process is paramount.

Protect What Matters Most

You may want to consider updating your policy if your revenue has grown in recent months. In addition, moving to a new office may also necessitate some changes to your small business insurance policy.

Buying new equipment may require updating your policy to protect said equipment from damage, loss, or theft. What’s more, if you have made recent changes to the services you provide and the products you sell, you may need to update your policy.

Business upgrades, changes to your ownership structure, entering into new supplier contracts or agreements, replacing existing business automobiles, expanding your business, renovating your office, hiring new workers, and offering new products and services are just some of the reasons to consider making changes to your small business insurance policy.

Please speak to your insurance broker or provider if you have any questions or concerns about your current small business insurance policy.

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