Small Business Insurance and Why It Is Worth It
Starting a new small business can be an exciting and rewarding endeavor. However, while small businesses represent an integral part of the backbone of the U.S. economy, they may need more resources and recourse than larger corporations. Various risks and exposures may eventually impact your organization regardless of how diligent or cautious you may be. With this in mind, you should consider adequate loss control measures, such as a versatile insurance portfolio, a top priority.
Why Is Insurance Worth it for Small Businesses?
If your small business lacks sufficient insurance, even a single accident or error could have irreparable ramifications for its financial wellness and future prospects. Your business could lack the resources to recover from such incidents without an adequate insurance package.
What Types of Insurance Do Small Businesses Need?
Your small business’s insurance needs are unique. Even companies that share the same industry or appear outwardly similar may have various circumstances that influence their risks and exposures, and subsequent coverage needs. Fortunately, several types of insurance may provide valuable financial security for businesses of most sizes and sectors. When assembling your small business insurance portfolio, consider prioritizing the following:
- General liability insurance—This coverage may provide financial assistance if your company is accused of being at fault for the losses of a third party, such as bodily injuries, property damage and personal and advertising injuries.
- Commercial property insurance—This coverage may financially protect your organization’s physical property and assets, including its buildings, electronics, equipment, inventory and furniture.
- Business interruption insurance—If an incident disrupts or delays your organization’s normal operations, this coverage may help pay for various losses and expenses, including reduced income, rent, mortgage payments and employee payroll.
- Workers’ compensation insurance—This part of your business’s insurance portfolio may render financial aid following employees’ work-related injuries and illnesses, such as for medical bills, lost wages and disability benefits.
- Errors and omissions insurance—This coverage may provide financial protection from accusations that your company provided professional services or advice that were incorrect, misrepresented, late or otherwise inadequate.
- Cyber liability insurance—If a data breach or cyber incident affects your small business, this coverage can assist with resulting losses and costs, such as hiring IT contractors, paying for fraud monitoring services and paying various legal expenses.
While the aforementioned types of insurance may be suitable for many businesses, your organization should thoroughly analyze its circumstances to identify any remaining coverage gaps. For example, if you use motor vehicles for commercial purposes, you may be required to carry commercial auto insurance.
Get the Right Coverage
With over 25 years of experience serving Connecticut, New Jersey and the New York metro area, John Murphy Insurance is well-equipped to help your small business secure optimal coverage. Contact us today to begin.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.