4 Quick, Interesting Small Business Insurance Facts

Developing and running a small business is far from being a child’s play these days. In order to become successful, owners face to face numerous challenges and implement excellent strategies to boost their profits. Moreover, every single company, regardless of its size and profile, is inevitably threatened by a plentitude of factors, including theft, acts of vandalism, storm, hurricane and tornado damage, floods and fires. Luckily, all these hazards can be addressed in a timely manner.

Small business owners who wish to protect their companies have the chance to invest in a decently priced insurance policy enabling them to minimize risks and enhance their profitability the easy way. Below you will find a few interesting small business insurance facts that will most likely offer you the details that you need to purchase the right type of coverage.

1)      There Are Various Kinds of Coverage that May Work for You

You should be fully aware of the fact that buying small business insurance is no easy task, taking into account the fact that there are various kinds of coverage that may match your needs, demands and financial possibilities. To spot the right one for you, rely on Insurance Quote Depot to compare small business insurance rates by zip code. This is the easiest method to analyze rates and pick the most appealing policy in your price range. Afterwards, it would be advisable to count on the expert guidance provided by a skilled insurance agent.

The ideal policy protecting your company against all conceivable risks is in fact a combination of various types of coverage, serving different purposes. For instance, general liability insurance offers you the chance to cope with multiple worst-case scenarios in which you are responsible for someone’s injuries, medical expenses or property damage. This policy covers all the legal hassles associated with potential claims of negligence, bodily injuries and accidents. Obviously, it represents a must-have, especially for small business owners whose clients and/or employees face significant risks.

Product liability insurance can make the difference between a prosperous future and bankruptcy if your company manufactures, retails or distributes goods that could somehow impact the safety or the health of staff members and consumers. You can estimate how much coverage you actually need by determining how many goods you launch on the market and how potentially hazardous they really are. For instance, the owner of a clothing store will definitely require less coverage than an individual who runs a small appliance brick-and-mortar store.

2)      Professional Liability Insurance is a Legal Requirement in Some States

It is always an excellent idea to do a little research on your own, to find out what type of coverage is considered a legal requirement in your state. This is the best approach that you could follow to avoid fines and penalties. You should know that professional liability insurance can be a legal requirement in some states. For instance, physicians are obliged to buy malpractice insurance to be able to operate in certain states.

This type of coverage is perfect for those who, due to their nature of their profession, can be dragged to court by unsatisfied clients. The policy offers you the chance to cope with claims of negligence, malpractice accusations and the effects of a wide range of errors and omissions that may impact the welfare of your customers and/or business partners. Even if you are one of the best players in your line of work, don’t hesitate to invest in professional liability insurance. Even some of the most frivolous claims can make you waste a lot of money if you are not insured. On the other hand, this policy gives you the support you need to defend your good name and protect your financial stability.

3)      There are 2 Types of Commercial Property Insurance, So Choose Wisely

It is extremely important to protect your premises at all times. Company property can be damaged or destroyed by numerous factors, including hail, earthquakes, smoke, fire, vandalism and civil disobedience. Always keep in mind that there are 2 types of commercial property insurance: all-risk policies that cover all the risks that could impact your business, except the ones mentioned in the policy, and peril-specific commercial property insurance, which covers the damaged caused by a list of very specific factors listed in the policy.

Business interruption insurance is a good example of peril-specific policy. As a general rule, an all-risk commercial insurance policy is suitable for most small-scale companies, while the second type of coverage (peril-specific) is recommended for businesses that are more exposed to certain threats on a daily basis (fire, crime, floods and so on).

4)      Home-Based Business Owners Require Additional Coverage

Have you ever wondered what gigantic, well-known companies like Apple, Ford, Hershey’s or Mary Kay Cosmetics may have in common? All these corporations started out as small-scale home-based business. As a matter of fact, it seems that half of the small companies operating in the U.S. at this point are actually home-based businesses. Even if this info extracted from recent statistics may sound very encouraging, note that before starting to put theory into practice and implementing your own money-making ideas in the comfort of your own home, you should learn how to protect your new source of income. Believe it or not, homeowners’ insurance will not help you keep all risks at bay, even if basically your home is your office. You may need to invest in additional policies, like general liability insurance for instance, to protect your best interest.

Don’t forget to compare small business insurance rates by zip code to spot the best deals and go for a policy that is in your price range. Don’t buy more or less coverage than you actually need. If you can’t seem to manage to evaluate your needs on your own, schedule a meeting with an experienced insurer and allow him to help you select the most appropriate policy for you, reflecting the highest number of benefits and the lowest cost.