Exactly What Does Small Business Insurance Cover?
Did you know that all the small businesses in the United States employ 47.8 percent of workers?
Small business insurance, which is also commonly referred to as commercial insurance, could help protect your business's income, property, and assets.
If you are unsure whether your business should invest in small business insurance, we have created this quick guide to help you better understand how your company may benefit from small business insurance. Keep reading to learn more!
What Are the Most Common Types of Small Business Insurance?
Small business insurance is a general term used to identify the different types of insurance that a business may have. Some of the most common types of small business insurance include:
- Business owner’s policy
- General liability insurance
- Property insurance
- Cyber insurance
- Workers' compensation insurance
Each of these types of insurance options could protect a small business against specific circumstances. Understanding each type of these insurance options and if your business needs them may help to place your company in a better position if you are ever in a situation where you have to handle loss reduction or accident recovery.
What Does Small Business Insurance Do for Your Company?
Small business insurance could help to cover the cost of any property damage claims or liability claims. In some situations, small business insurance may help replace any lost income that your business is not generating as a result of temporarily closing.
What small business insurance covers exactly will depend on the type of coverage that you choose. Some more intensive small business insurance plans may protect your company against perils such as lightning, wind, theft, and fire.
The majority of small businesses choose general liability insurance and property insurance sometimes called a business owner’s policy (BOP). If you have any employees, you may also want to consider workers' compensation insurance.
Small business insurance policies are a highly valuable resource that you can have as a business owner. They provide you, as the owner of the business, with a type of safety net that may protect your business from any risk or liability. Plus, small business insurance could be a great tool to have in your back pocket when you are facing uncertain circumstances.
How Much Does Small Business Insurance Cost?
How much you spend on small business insurance will vary depending on several factors. These factors include:
- The scale of your business
- The industry your business operates in
- The perceived risk
- The location of your business
- The history of claims your business has made
How much your business ends up spending on small business insurance options will vary and depends heavily upon your company's unique needs. Our easy-to-use quoter can help determine the cost associated with the coverage you may need for your business.
Understanding How to Find the Best Small Business Insurance for Your Company
Identifying the best small business insurance options that may protect your business can be tricky but identifying the best policy available to you should not be.