Small business insurance is designed primarily to give business owners and their employees’ financial protection in case there is an unexpected accident involving the owner, staff, clients, or the property of the business. Typical claims for property damage or client damage are in the neighborhood of $30,000 per year. Most of these claims are settled out of court and no injuries are reported. This may not be the case if you have inadequate insurance coverage.
If you are planning to employ employees or any part of your business involves the operation of vehicles, you need to consider purchasing property protection and general liability coverage separately. Property protection coverage will provide a source of income in the event of a total loss of the assets of the business. General liability coverage will pay medical expenses and any legal fees in the event of an injury on-site. This includes both mental and physical pain and suffering. It also covers you against slander, malicious prosecution, and intentional or negligent damages. Shoplifting and other related activities are not included in this coverage.
When it comes to the purchase of small business insurance it is important to understand the different types of coverage offered by many insurers. You may wish to enlist the services of an attorney to help you evaluate your options. The Small Business Administration website can assist you in finding answers to frequently asked questions. You can also learn about common policy features such as excess, collision, liability, economic damage, and business interruption. Each insurer has different limits of liability that they will cover. Knowing these limits can help you determine what the maximum amount of out-of-pocket expenses that you can incur will be.
There are a few legal protections that are included in most policies for small business insurance. General liability insurance helps protect you from lawsuits that result from negligence or substandard operations. With general liability insurance, you are covered if you are sued due to personal injuries, property damage, or advertising claims. Some policies also offer business interruption insurance. This coverage will help cover your business if you are forced to close while repairs are being made. If a permanent employee is needed to continue working on the premises, business interruption insurance will provide the funds needed to cover the opening and the period during which the establishment will be closed.
Small Business Insurance Quote
There are some ways that you can reduce your small business insurance quote. If your business is located in a state that does not require a business insurance policy there are some ways that you can decrease your premium payments. To find the best deal for your coverage you should compare multiple quotes from competing insurers. You should also consider raising your deductibles and reducing your coverage. Increasing deductibles and decreasing coverage can save you hundreds of dollars per year. When you are ready to purchase your small business insurance, make sure that you ask each question that you have to your insurer so that you get the most accurate business insurance quote.
You can sometimes call your insurer and ask them if they have a small business insurance quote for one particular policy. Sometimes they might be able to give you a quote based on several policies that you may already have. It never hurts to ask and sometimes they might even have an offer for a discount. Purchasing this type of insurance with several different policies from a single insurer can help protect you from financial disaster.