small business owners

What Types of Business Insurance are Available to Small Business Owners?

Opening a small business is no easy feat and includes many important details to explore and establish. Owners must investigate and acquire necessary licenses, permits, rent or lease information, important tax documents, and more. Additionally, owners should confirm that their business is insured in the necessary areas.

Insurance options for small business owners depend on the type of product that a business offers. Certain companies will need to have a particular type of coverage depending on products or services they offer.

Ultimately, small business insurance works to protect a company from any financial harm that may arise, as well as safeguarding the company in the event that accidents occur.

Types of Business Insurance for Small Businesses

In general, there are a few types of insurance that all small businesses need, typically included in a business owner’s policy.

General Liability Insurance

If you are a small business owner, general liability protects you and your small business from any liability claims that may arise. These claims can occur if a customer is injured while on company property. Injuries may happen due to direct interaction with your product, such as a tool or sharp knife, or simply by slipping and falling.

This type of insurance will also cover property damage claims, which can be filed if a customer’s belongings are lost or damaged while on the property.

Finally, general liability will protect you in the case of a personal liability claim. These claims are filed in the event of personal defamation. Without this insurance, you would be forced to pay all costs of these claims out of pocket.

commercial insurance florida

Business Income Insurance

Business income insurance, or business interruption insurance, will replace your lost income in the event of a natural disaster, property damage, or theft. This type of coverage is beneficial if a store closure is necessary to repair the property.

If the store must close down for months at a time to complete repairs, large amounts of revenue may be lost. Business income will assist in replacing the revenue that you would have earned during this time.

Additionally, business income insurance will protect you in cases of theft. This can be in regard to stolen product, or funds stolen directly from the business. Your insurance policy will cover the lost revenue while you work to replenish the missing product or funds.

Commercial Property Insurance

Commercial property covers the property, building, technology, furniture, tools, records, and any fixtures of your small business, whether owned or rented. This coverage is vitally important, as it protects your business and its assets from damages caused by fire, wind, and lightning, as well as theft or vandalism.

Without this coverage, any damage to the building, its fixtures, and virtually anything inside the physical building will not be protected. Any costs to repair or replace these losses would be paid directly out of your pocket as owner.

Every small business owner with a physical location should have this type of insurance to ensure that all assets are protected.

business insurance

Additional Coverage

Depending on the nature of your small business, other types of coverage should be considered. While not included in a business owner’s policy, other policies may be necessary to protect you and your product from potential harm.

A few other policies to consider include:

  • Workers’ Compensation Insurance
  • Commercial Auto Insurance
  • Professional Liability Insurance
  • Commercial Umbrella Insurance
  • Cyber Liability Insurance

When determining additional coverage, it is important to consider the reach of your business, as well as potential growth.

Looking for Coverage?

Are you a small business owner seeking guidance or coverage for your business? At GWK Insurance, our agents are experienced with business insurance and are ready to help. If you need guidance throughout this process, we would love to offer our services. Contact us today to schedule a consultation or to receive a quote.

small business owners

Top 3 Business Insurance FAQs

Business owners have a lot on their plates, and it’s tempting to put things like business insurance on the back burner. However, it’s critical to safeguard your company against unexpected accusations and lawsuits.

We live in a litigious society, and even if you feel you’re doing everything right, you could be sued. Business insurance can help protect you and your company in a number of ways.

3 Most Commonly Asked Business Insurance Questions

Here are the top three most common business insurance questions most business owners have.

#1 Why Do I Need Business Insurance?

Business insurance, also sometimes referred to as commercial insurance, is essential security for the possibility that things don’t go as planned. If an accident occurs in your place of business, for example, you could be sued. The high cost of litigation, medical bills, and property damage claims is the primary reason why businesses need insurance.

The risks you face influence the type of insurance you need. General liability insurance, which covers client injuries and other common mishaps, is the most popular policy obtained by businesses. Additional rules may be required if you have workers, own a facility, drive a company car, or provide professional advice.

business owner

#2 What Does Business Insurance Cover?

There is no such thing as a single insurance policy that covers everything. There are two broad areas of coverage in general:

Business liability insurance protects you in the event that someone holds your company liable for damages, injuries, or losses.

Commercial property insurance pays for the expense of repairing or replacing damaged or stolen commercial property. This includes the structure or building in which you operate your business.

business insurance

#3 What Kind of Business Insurance Do I Need?

This is dependent on the kind of business you have. General liability insurance is required by most firms, especially if you meet with clients face to face. Professional liability insurance is required if you provide professional advice. If you have company equipment, such as computers or tools, you should look into a business owners’ policy (BOP), which combines general liability and property coverage.

Certain business owners in Florida are required by law to get insurance:

  • If a company has four or more employees but does not work in construction, it must acquire workman’s comp insurance.
  • If a company employs even one person in the construction industry, it must acquire workers’ compensation insurance.

In addition, the law compels you to get commercial auto insurance if your company owns, leases, or operates a vehicle.

5 Main Types of Business Insurance Coverage

To further help you understand commercial insurance, here are the five main types that you may want to consider.

working in office

General Liability Insurance

Legal concerns arising from injuries, accidents, and negligence claims are often covered by general liability insurance. Libel, slander, settlement bonds, litigation defense, property damage, bodily harm, medical expense, and other claims are covered by this form of insurance.

Product Liability Insurance

You may be held liable for a product’s safety if you sell it. Businesses that wholesale, distribute, or produce items require the greatest product liability insurance. If a defective product causes bodily harm or injury to one or more people, this type of insurance can protect your company from financial liabilities.

Professional Liability Insurance

If your company offers services, you should consider purchasing professional liability insurance, sometimes known as errors and omissions insurance. This sort of insurance protects your business from concerns like errors, malpractice, and carelessness in the services you provide to your customers.

Commercial Property Insurance

This type of insurance protects your organization from loss or damage to company property caused by storms, fires, wind, and other natural disasters. Commercial property insurance can cover everything from lost income to damage to the structure and its contents.

Home-Based Business Insurance

More than ever before, businesses are being run out of their owners’ homes. Furthermore, many people are unaware that home insurance does not cover commercial losses.

You may be able to add provisions to your existing home insurance policy to cover some fundamental business risks, such as property damage, depending on the type of business you operate, and the risks associated with it. However, you may find that these very basic add-ons are insufficient to adequately protect your business. To be adequately insured, consider acquiring supplementary insurance coverage, such as professional liability and/or general liability insurance.

Always check with your insurance representative before deciding which forms of insurance to get. They can provide the proper guidance to ensure that that your company is adequately insured.

Find the Best Business Insurance Coverage for Your Company

We understand that starting and operating a business is a lot of work and adding business insurance to your already-heavy plate may feel intimidating.

However, at GWK Insurance, we are here to assist you in finding the best possible business insurance coverage to safeguard your organization. Contact us for assistance in obtaining the most competitive estimates for your insurance needs.