What is Small Business Insurance?
Business insurance refers to a broad category of insurance policies designed to protect businesses against various risks and liabilities. These policies provide financial assistance in case of unfortunate events such as property damage, lawsuits, or employee injuries, having the potential to negatively impact business operations and finances.
In short, business insurance provides security for your assets. Without it, you may have to pay out-of-pocket for incidents that result in costly damages or legal claims against your company. Depending on the severity, an unexpected incident could be financially devastating for a small business without business insurance.
Investing in business insurance is a great step in securing the future for your small business.
Types of Insurance Coverages for Small Business.
Business Owner’s Policy:
As a small business owner, you can save money on your insurance by packaging the top three recommended coverages (property, general liability, and business interruption) in a single policy.
General Liability:
General liability insurance covers legal fees if your business causes harm or damage to someone. General liability insurance is crucial for small businesses to protect against potentially devastating costs in case of incidents.
Commercial Auto:
Most states require commercial auto insurance if you drive company-owned or leased vehicles. If someone sues your business because your vehicle was in an accident, you should protect your company’s finances.
Worker’s Compensation:
Most states require workers’ compensation if you have employees. It provides lost wages and medical benefits to employees when they are injured on the job – and it shields you from employee lawsuits.
Cyber:
58% of all cyberattacks target small businesses. If you accept credit cards, you may be at higher risk of a cyberattack. Having a cyber policy can protect you from network damage or a deliberate breach.
Small Group Benefit:
If you have a small business with 2-99 employees, you can offer health benefits to your employees with a money-saving group rate. Providing benefits like health insurance can help you recruit and retain top talent.
Commercial Umbrella:
A commercial umbrella is effectively insurance for your insurance policies. If a lawsuit exceeds your insurance coverage for your business, an umbrella policy can provide additional financial protection.
Professional Liability:
If you perform a professional service, you may face lawsuits from unhappy clients who are not satisfied with your work. Professional liability equips you to handle any potential legal costs.
What Insurance Policies Do I Need for my Small Business?
Many states require businesses to have insurance for their employees. This includes workers’ compensation, unemployment, and disability insurance. The law mandates these types of insurance. However, businesses in different industries may require specific business insurance.
Having the right insurance to protect your business from unexpected lawsuits is important. Your opinions on fairness or morality of the case do not change this fact.
Lawsuits against small businesses are more common than you may think. In a study conducted by the Small Business Administration, among 65,000 small businesses, researchers found that a staggering 36% – 53% of small businesses get sued every year. This often can be detrimental for small businesses because lawsuits are often costly. Having the right coverage can make a difference in the future successes of your business when unexpected lawsuits arise.
If you are unsure how much or what types of coverage your business needs, NEWITY has partnered with Mylo to help you find an insurance plan that fits your business’s needs. Mylo’s AI-powered recommendation engine matches your unique needs with the best insurance solutions. Mylo has streamlined their process into three steps to make the insurance search simple.
- Answer a few questions
- Get expert recommendations
- Match with the best value from leading carriers
Starting with Mylo is risk free and if you have questions, licensed advisors are available to provide expert guidance across various coverage areas. From business insurance to individual insurance, Mylo can recommend the ideal coverage for your insurance needs and find you the best prices from a wide range of trusted carriers.
The right insurance for your small business will protect against unexpected risks, securing your assets, finances, and future growth. For additional solutions to your small business needs, visit our business services page for more information.