Launching a small business is exciting and worth celebrating. However, you may experience many concerns and questions throughout the process, especially regarding insurance policies. The right small business insurance plan can make or break your budding enterprise.
Our team at Lee Insurance Agency understands the challenges of owning and operating a small to mid-sized business. This article covers everything you need to know about small business insurance.
Why a Comprehensive Insurance Policy Is Essential
At first, you might think your small business doesn’t need comprehensive insurance coverage. After all, you’re not making millions of dollars from millions of customers right? Wrong. A well-rounded insurance plan is crucial to achieving your business goals and seeing growth.
Here’s how the right insurance policy can benefit you:
- It protects your small business from financial loss due to employee turnover and property damage.
- It helps you steer clear of legal trouble, such as lawsuits.
- It establishes a good reputation by keeping your customers safe and offering compensation for employees in certain situations.
What Kind of Commercial Insurance Should a Small Business Have?
There’s no one-size-fits-all formula for finding the right type of small business insurance. Each business offers something different from the one next door, so your insurance plan should look different, too. That said, many companies have similar insurance policies.
The following are the most common kinds of commercial insurance you’ll want to consider having:
- General liability insurance: This type of insurance covers liability claims resulting from personal injuries or property damage. It provides the basic protection you need if you have a physical storefront and comes with other coverage options in a business owner’s policy (BOP).
- Workers’ compensation insurance: Workers’ comp takes care of medical expenses and other costs if an employee gets hurt on the job.
- Property insurance: Natural disasters like fires and storms can destroy your property and damage your inventory. Property insurance keeps your investments safe and allows you to rest easy knowing you have adequate coverage.
- Professional liability insurance: Professional liability insurance (PLI) covers legal claims against your company related to errors and omissions. Mistakes will happen no matter how careful you are, and when they do, PLI insurance has your back.
- Product liability insurance: Does your small business manufacture or design goods? You should consider getting product liability insurance. This type of insurance protects your company against liability claims resulting from any bodily injuries and property damage a defective product might cause.
Important Small Business Insurance Considerations
Determining the best small business insurance policy for your needs can be challenging. As you see what is available and review your options, keep in mind the following key considerations:
- Understand the different types of business insurance. You must know the ins and outs of different insurance policies before choosing one. Read through each policy carefully and make a list of things they will and will not cover.
- Know which types of insurance are mandatory. Some types of insurance are suggestions; others are requirements. You’ll want to know which ones the law requires to avoid legal trouble in the future.
- Get an insurance policy that meets your needs. You probably don’t need product liability insurance if you don’t make or design products. Likewise, you probably don’t need commercial property insurance if you don’t have a physical storefront. In other words, you should only pay for the necessary coverage and not waste money on unnecessary expenses.
- Remember that cheaper isn’t always better. Don’t let costs be the only thing that influences your decision in selecting the right type of small business insurance. Cheap insurance policies might sound good initially but may not provide the coverage you need down the road. It’s best to prioritize coverage options over package pricing.
- Ask for help when you need it. The world of insurance can be overwhelming for many small business owners. However, you shouldn’t have to face it alone. If you need help understanding your policy or reviewing options, feel free to reach out to an experienced insurance agent.
Get the Small Business Insurance Coverage You Need Now!
Are you looking for reliable small business insurance? At Lee Insurance Agency, we’ve provided top-quality insurance coverage in Humble, TX, and the surrounding area for over 70 years. We can help you find an insurance plan that fits your needs and budget.
Our Insurance Agency has licensed team members who will get to know your company and customize your insurance plan. Contact us today at (281) 812-8400 to get started!