Having the right small business insurance can be the difference between thriving and struggling. Protecting your assets, income and reputation is critical if you want to ensure that your business stays afloat in case of an unfortunate event that requires emergency repairs or costs thousands of dollars. But with so many different types of insurance available, how do you know if your small business is protected? Here are some tips on how to assess whether you have the right cover for your specific business needs:What types of insurance do small businesses need?There are several types of insurance that many small businesses find they need, and the coverage you choose depends on your industry and business model. Some of these include:
- Public liability insurance - Protects you and your business if a person who is not employed by you sustains an injury or suffers a loss because of an accidental occurrence that you or your business is found liable for.
- Business interruption - Covers lost profits if a covered event takes place, such as a fire or flood. This is especially important for companies that rely on having steady cash flow for survival (such as restaurants).
- Property & equipment insurance - Protects against events like theft, vandalism, earthquakes, tornadoes and more in case something happens to the physical building structure or its contents (including computers).
- Workers compensation - Provides medical care benefits to employees who become injured at work; this may also cover temporary disability payments during recovery periods following an injury-related hospitalization.
- Commercial auto - Covers damage to your company vehicles as well as liability if they’re involved in an accident. This is especially important if your employees drive on business trips.
- Cyber protection insurance - Protects against hackers stealing sensitive information from your business, such as customer credit card data or proprietary formulas or designs. It also covers claims from customers who say they were harmed by these types of events.
Are you covered for the right kind of business activities?Here are some questions to ask yourself:
- Are you covered for the right kind of business activities? If your business is selling goods or services, check that you have commercial general liability insurance (CGL). This covers injuries and property damage caused by your employees and customers. It also covers legal fees if someone sues your company.
- Are all your employees covered? If not, they may be at risk of being sued personally if they accidentally injure someone while doing their jobs on behalf of your company.
- Do you have adequate coverage for property damage? If something goes wrong with one of your machines or vehicles and causes damage to someone else's property, it could mean paying out thousands of dollars in damages.
- If you're a service provider, like a plumber or electrician, make sure that your policy covers losses due to faulty workmanship as well as damage to equipment
There are many different types of business activities, and each one requires different kinds of insurance. For example, if your business is involved in construction and building maintenance, you'll need to make sure that the right type of insurance is in place for this activity. If you're unsure what level of cover you need for your specific situation, talk to an expert from Connect Business Insurance. We can advise on any aspect of your insurance needs across a range of sectors and industries.Do you have enough cover in place for your assets?The value of assets can be easy to underestimate, but they can be the difference between a small loss and a catastrophic one. When determining how much insurance cover to take out, it’s important to consider the cost of replacing or repairing damaged assets.Is there enough cover in place for insured liabilities?This includes claims that arise from damage caused by an employee or contractor working on site, faulty goods sold by the business (e.g., faulty parts), and any other potential liabilities that arise from being a business owner. In these instances, having adequate liability insurance will ensure you don’t face financial ruin if something goes wrong. It's also worth noting that each state has different rules regarding what types of businesses need workers compensation insurance—so speak with one of our brokers for any assistance in determining the correct amount of coverage for your situation
Do you know what you are and aren't covered for?If you're not sure what you need to protect your business, check your insurance policy. It will tell you exactly what is and isn't covered by the insurance cover for your small business.If there's anything in the fine print that doesn't make sense, talk to your insurance provider about it. If the policy seems to leave out any important information, ask whether there's an exemption or exclusion (and why).It's also worth checking that the sum insured on all policies is enough to cover all your assets as well as liabilities associated with running a small business. If you are unsure, contact us and we can help answer any questions you might have about making sure your assets are sufficiently protected based on current market conditions.Contact us today to find out what you may or may not be covered for.Having the right kind of small business insurance means peace of mind and financial security.Having the right kind of small business insurance means peace of mind and financial security. It is not only a way to protect your business, but it is also an investment.Insurance can be confusing at times, but we are here to help you understand what exactly you need in your policy so that you can sleep better at night knowing that everything is covered. Don't hesitate to contact us for more information on getting the right policy for your needs.Hopefully, this post has given you a good idea of what type of insurance you need for your small business. If anything, it’s to remind you not to skimp on the basics. Remember that having the right kind of small business insurance means peace of mind and financial security - so make sure that you have enough cover in place for all types of scenarios.