Choosing The Best Insurance For Your Small Business
The food truck you visited for lunch, the t-shirt you bought online, and the small marketing company that you run all have one thing in common, they all need small business insurance. There are a lot of decisions to be made about your small business. One choice you should make up front is purchasing insurance. There are different kinds of insurance available for different types of small businesses. Depending on your industry, you may qualify for and need a different kind of insurance than others. Insurance would be there to protect you and your livelihood if an accident were to happen.
Whether you’ve just filed for your business permit or have had your small business up and running for years, it is essential to understand all aspects of your business. For example, if you run a food truck, the two most noticeable aspects of your business are driving from place to place and serving food. Just like any car on the road, you’ll need driver’s insurance. When you employ people, you need to protect against any accidents. A worker could bump their head or burn their hand when cooking food. You’ll need some version of a worker’s compensation insurance for workers to collect lost wages or other costs that are a result from a workplace injury. If your truck were to leak oil and damage the property where you’re staged you’ll need some property insurance. There are many other aspects that could result in insurance coverage of some kind for this business. It is essential to think about how your business impacts other people’s lives.
Compare Prices and Coverage
Shopping for insurance can be just as confusing it is stressful. Even though you’d want the process to end as soon as possible, it is in your favor to take the time to make an educated decision. Obtaining insurance may be daunting task, but it is an important safety net for your business. There’s insurance coverage offered online, big national insurance companies, and smaller local companies. You should spend a significant amount of time getting quotes and comparing coverage plans. It would be wise to ask others with the same or similar businesses about their experiences is with individual companies and coverages as well.Choosing the wrong type of insurance plan can result in overpaying or not being covered properly when an accident happens.
Understand the Different Types of Small Business Insurance
Forbes has a great article that explains the most common types of insurance for your small business. The most popular versions of small business insurance are:
General liability insurance: is a standard coverage for any business, even if it’s operating out of someone’s home. This type of insurance protects you if your product or service harms a worker or customer.
Property insurance: Covers you if any of your business’s property gets damaged or stolen.
Business owner’s policy (BOP): offers a package that includes multiple types of insurance that a business owner will need. It can cover areas such as property insurance, vehicle insurance, and liability insurance.