The right small business coverages will keep you from walking on a tightrope
Key takeaways:
- You’ve worked hard to create a thriving business. Protect it by making sure you have the essential small business coverages in place.
- Some policies are required by the State of Florida, some are must-haves for every business, and others apply to certain types of business – do you know what you need?
- You need coverage to protect both places and people – property damage and personal liability are just two policies that do this.
- Does your business have remote employees? Do you have the coverage you need to protect any equipment they are using?
Starting a business is no small feat. It takes imagination, initiative, dedication, and drive. Once things are up and running, you have new worries. The largest of these, of course, is generating enough revenue not only to survive, but to thrive, grow, and expand.
As you made your to-do list of essential items for your business, did you remember to include small business insurance? Some policies are required by the State of Florida, and others protect you from the unknown. This unknown can include things like theft and property damage, as well as expensive lawsuits.
Small business coverages are essential to protect your business and your livelihood from whatever may happen. Don’t know what coverages you need? A sit-down with your industry-savvy agent can get you the policies you need at a deductible and price you can afford. Start your conversation with this checklist of small business policy essentials.
√ General liability insurance
This policy protects your business from bodily injury claims to someone else, property damage to someone else’s belongings, and claims of libel or slander. Without this coverage, you would have to pay for medical expenses, property damages, and lawsuits out of your own pocket.
√ Commercial property insurance
Whether you run your business from your home, a commercial building you own, or a location you rent, commercial property insurance is essential. It covers the building, equipment, tools, inventory, furniture, and personal property that you use to run your business. For home businesses, it covers more, including things your homeowners policy doesn’t.
√ Business income insurance
Business income insurance helps you replace lost income if you have to shut down operations because of a covered instance of property damage. Also called business interruption insurance, this type of policy helps to cover lost income until you can reopen. It gives you the means to pay your operating expenses such as payroll and bills, mortgage or rent loan payments, and taxes.
√ Workers’ compensation Insurance
The State of Florida requires businesses with employees to have workers’ compensation insurance. Workers’ compensation insurance ensures injured workers get medical care as well as compensation for part of the income lost while they are unable to work and protects you from lawsuits by workers injured while working.
√ Professional liability insurance
Professional liability insurance is a must for the practice of any form of medicine and is required by the State of Florida. This policy gives you protection if your patient claims error, negligence, or malpractice. Other professionals who should consider this type of coverage include accountants, architects, engineers, graphic designers, IT consultants, real estate agents and brokers, and those in insurance.
√ Product liability insurance
Not every business will need it, but if you produce a product, it’s essential. Product liability insurance protects you if any harm or injury is caused by something your company makes. This can include unclear safety warnings and instructions, manufacturing defects, design defects, and other issues that can, without protection, lead to an expensive lawsuit.
√ Cyber liability Insurance
Many small businesses fail to protect their customer databases and essential business documents from cybercriminals. This makes them low-hanging fruit for bad actors. Fully 50% of cyberattacks are targeted toward small businesses, and 71% happen at businesses with 100 employees or fewer. Your cyber liability insurance – also known as data breach insurance – helps pay your cost to notify impacted people, offer credit monitoring services, and launch a PR campaign to repair the reputational damage.
√ Coverage needed for remote employees
Remote working creates challenges for companies, but insurance should not be one of them. Ensure you have the right cyber insurance plan in place that covers remote workers. Even though these employees may never set foot on your business property, workers’ compensation is still required. Also, make sure your commercial property insurance covers company-owned equipment employees are using at home.
Those are the essentials, but there are other policies you should take a look at to fully protect your business.
Other policies you should consider
Along with the business essentials we’ve outlined so far, some other policies offer small business coverage you might think about to completely protect your business. They include:
- Hurricane insurance. In Florida, hurricanes happen, and they are not covered under a commercial property insurance policy. You could be left empty-handed after a severe storm, so talk to your agent about getting covered.
- Commercial umbrella insurance. Envelope your business in extended coverage. Commercial umbrella insurance beefs up the coverage limits on some of your liability policies. If a claim exceeds your policy limits, this type of policy helps pay for the difference.
- Commercial auto insurance. Just like your homeowners insurance won’t cover a business-related claim (without special riders), your personal auto insurance isn’t going to cover you if you are on the road in a company-owned vehicle or your personal vehicle if you’re using it for business. You’ll be personally on the hook for any property damage and bodily injuries.
It doesn’t matter where you are with your business: The right type of business insurance is important. You might be a startup that needs a good foundation or an experienced business owner who hasn’t looked at their policy in a while. Call your agent today about your small business insurance coverage, because you don’t know what might happen next.
Avante: We’re the small business insurance experts
Congratulations on your small business! Just remember that without the right insurance coverage, you not only risk the future of your business but your family’s future as well.
At Avante, we’ll work with you to build the comprehensive business coverage you need with a deductible that works for you. Reach out today, because you never know what tomorrow will bring. At Avante, we’re always standing by.
This blog and website are made available by the publisher for educational and informational purposes only. It is not to be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state.