While careful business planning can help you reduce business risk, no amount of research and preparation can protect you from every single threat out there. Small business insurance is more important than ever, thanks to the array of modern risks business owners face.
What is Small Business Insurance?
Small business insurance is a paid policy you can take out to protect your business and yourself. This includes financial liability protection in the case of lawsuits, property damage, injuries, workers’ compensation claims, or any other losses that may arise while in operation.
Different small business insurance companies offer different types of insurance—and various small businesses need different policies, depending on what they do, where they’re located, how many employees they have, and a host of other factors.
What does Small Business Insurance Cover?
Small business insurance covers a range of things, and the specifics depend on the plan and provider. Some examples could include:
Third-party claims of bodily injury or property damage: This is crucial if someone is injured on your business premises, like the example of someone slipping in your warehouse.
Damage or loss of physical assets: This could be buildings, equipment, or inventory. It covers events like fire, theft, vandalism, or natural disasters.
Replace lost income: If a covered event disrupts your business operations, this insurance helps replace lost income and cover ongoing expenses.
Claims of negligence or inadequate work: It can protect you if a client sues for inadequate service or negligence in your work.
Types of Small Business Insurance
The world of small business insurance can seem complex, stuffed with endless, complicated offers. You’ll need to shop around to know what’s best for your company, but in general, you’ll need at least general liability insurance and workers’ compensation insurance.
Here are 7 common types of small-business insurance:
General liability insurance: Provides broad, general coverage, protecting your business against injury and property claims, as well as libel and slander.
Workers’ compensation insurance: Mandatory in most states for businesses with non-owner employees, it covers costs of medical care, lost wages, disability, and even funeral expenses if an employee is injured on the job.
Commercial auto insurance: Covers your business if an employee gets into an accident while driving a work vehicle.
Commercial property insurance: Helps your business replace lost or damaged commercial property, including real estate, furniture, tools, and inventory.
Business income insurance: Covers lost income if your business suffers property damage caused by fire, storms, or theft.
Professional liability insurance: Protects against claims that your advice or services caused financial harm to a customer.
Business owner’s policy (BOP): A small-business insurance package that typically includes general liability insurance, commercial property insurance, business income insurance, and workers’ compensation.
How Much Does Small Business Insurance Cost?
The price of small business insurance depends on the coverage, policy, and provider. According to data from Insureon, small businesses pay around $42 per month for general liability insurance and $57 for BOP. Costs vary based on the type of coverage and your business’s size and industry.
Do You Need Small Business Insurance?
Small business insurance isn’t free, but it provides peace of mind, freeing up space in your mind, giving you fewer things to worry about. While it may not be required, it’s generally a good idea to have at least some sort of protection.
If you’re a small business owner in Calgary looking for the right Small Business Insurance Plan Calgary, consider reaching out to Beneficial Insurance Solutions . They specialize in tailoring insurance solutions to meet the unique needs of small businesses. Whether you’re just starting or have been operating for years, they can help you navigate the complex world of insurance and ensure your business is adequately protected.
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