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Big Myths about Small Business Insurance — DEBUNKED!

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Big Myths about Small Business Insurance -- DEBUNKED! on avanteinsurance.com

Independent contractors, home-based and part-time business-owners all need comprehensive small business insurance coverage

Small businesses are the cornerstone of the American economy. Per U.S. government data, there are nearly 28 million small businesses in the United States, collectively employing tens of millions of employees around the country. The U.S. government defines a small business as one with less than 500 employees– but most small businesses are much smaller than that.

While many small businesses with more than 100-200 employees have extensive insurance coverage, many ‘smaller’ small businesses, with 1-20 employees, often don’t have the coverage they need. That leaves them vulnerable to threats including disasters, illnesses, accidents, lawsuits, and governmental fines. Here are common myths about small business insurance:

1. If I work alone or from home, I don’t need any insurance

A whopping 52% of American small businesses are home-based. One of the benefits of opening a home-based business is reduced overhead expenses, but even tiny, home-based business owners usually need to have business liability insurance. These policies can fund legal defenses and pay for damage claims if any product you or your company produces or service that you render is alleged to have caused injuries or damages to a third party.

2. Liability insurance is the only kind of insurance a small business needs

While liability insurance may the most important insurance policy for business owners to buy, especially if they operate a very small business, it’s far from the only insurance policy most small business owners need. Small businesses often need property insurance (if they own their own office building), renters insurance (if they rent or lease an office building), commercial auto insurance (for company vehicles), data breach insurance, among other kinds of coverage. In addition, your business may need more than one kind of liability insurance. In addition to general liability insurance for injuries and damages. professional liability insurance, otherwise known as errors and omissions insurance, may be required to insure against damage a client may have accrued due to a mistake on a business’s part.

3. As a business owner, I’ll have to buy all my small business insurance policies separately

Many insurance providers offer business’ owner policy (BOP) insurance packages. These products often include a combination of business interruption insurance, liability insurance, vehicle insurance coverage, crime insurance, and property insurance. Businesses can usually tailor a specific package of insurance policies to meet their business’s individual needs. Purchasing a BOP package can be an efficient way for businesses to save time and money while getting the comprehensive coverage they need.

4. You don’t need to have workers compensation insurance for employees unless you’re a huge company

Workers compensation policies vary greatly between individual states, so make sure to check on your state government’s website to examine your state’s specific policy. Some states, like Arizona, require “all public and private employers with at least one employee” to acquire workers comp policies, while Florida requires employers with at least four employees to buy a policy. It’s essential to stay up-to-date on the workers comp insurance laws in your state, as violating them could result in lawsuits, serious fines, and reputational damage for your firm.

Do serious research before purchasing insurance for your small business

Every small business is different, and that means that every small business has different insurance needs. Smaller, home-based businesses may only need three or four simple policies, while larger ‘small’ businesses may need ten or more comprehensive policies.

While it’s usually better to over-insure your business than to under-insure it, you don’t want to waste money on coverage you don’t need. That’s why you should research to make sure you make smart choices when it comes to purchasing insurance before making any big decisions that you might regret.

To learn more about how to make smart insurance decisions for yourself, your family, and your small business, contact the experts at Avante Insurance today for a free consultation.

Cool Tips on Small Business Insurance


Cool Tips on Small Business Insurance on avanteinsurance.com

How you can “pump up” your coverage.

You’ve got insurance to cover your business, your company vehicle, the equipment and machinery, the building, and worker’s compensation to provide protection for you and your team. But what you might not know is that today’s business policies can do even more to guard you and your company against unexpected losses. Take a look.

When good products go awry: Product Liability Coverage

You take pride in your products and in most cases, there’s zero to worry about. But in the event that something unthinkable happens and someone files a complaint against you and your company for injury or damage caused by your product, Product Liability Protection comes to the rescue. This type of coverage will protect you in various instances including:


  • • A defect in the design


  • • A defective warning or instructions


  • • A manufacturing mistake


  • • A flaw in the production process


When your online voice makes a faux pas: Advertising Injury Coverage

Whether via social media channels on your own business website, if you use someone else’s photographs or likeness, or accidentally infringe on copyrights, your business insurance will ensure you don’t lose your shirt or your business. Advertising Injury Coverage covers you against:


  • • Slander or libel


  • • Posting images or verbiage that belongs to someone else


  • • Logos, brand, or copyright infringement


When you’re forced to close your doors or stop production: Business Interruption Coverage

Unexpected events happen and when they do, sometimes it’s necessary to close your business temporarily. Whether there’s a fire, a storm, or some other incident, if you have Business Interruption Coverage, you’ll have the necessary funds to get through the downtime. So you’ll still be able to keep up with your various business expenses including:


  • • Payroll


  • • Lease payments


  • • Business loan payments


If there’s a data leak, breach, or theft: Cyber Liability Insurance

While you may not think your small business has to worry about data breaches, the reality is that all companies that store any kind of information within servers or the cloud need to be at the ready. Imagine the consequences if your files with customers’ personal information were accessed by someone outside your company. Or if your company’s financial data was compromised. With Cyber Liability Insurance, you can rest assured that you’ll have the protection you need to recover from such events. Cyber Liability is available in different types including:


  • • First-party response coverage: Provides coverage of expenses related to notifying affected customers, crisis management, and investigation into what or who caused the breach


  • • Third-party response coverage: Coverage to help pay for any legal expenses in the event that a third party files a lawsuit against you or your company in response to the breach


  • • Extortion expenses: In the event that a cyber crook attempts to extort money from you and/or your business in exchange for your data, this coverage will help cover expenses


As the world continues to change, so does the need to protect your business and all your related assets. These four policies are among the many products we at Avante Insurance can customize to suit your specific needs. Give us a call today to get a quote.