Budget for nonprofit insurance for your small business is vital; you may have to buy coverage before you have a fully-formed business. The costs can rack up. But beyond general liability and workers’ compensation, are there other types of coverage that might be important? Purchasing a commercial insurance policy for a new business or during a startup is not the easiest thing to figure out. You have to consider a lot of factors.
Types of Insurance for a Small Business
General liability insurance covers injuries to employees or customers on your business premises, injuries that result from your products, and bodily injuries that occur on school grounds. General liability coverage should be broad enough to include all aspects of a business, including customers and vendors who come onto your private property.
Commercial Auto Insurance
Commercial auto insurance covers the use of any business-owned vehicles. If you have a delivery van, a truck used for moving, or a company car for employees, you would need commercial auto insurance. This policy also provides coverage if your employees rent or borrow vehicles for business purposes.
Workers’ compensation covers workplace injuries not covered by general liability. The law requires employers to carry workers’ comp, which pays medical expenses for your employees and lost wages for nearly any injuries or deaths. Injured employees must file a claim and give the claims administrator proof of their damages.
Property insurance covers the cost of replacing your business inventory if it is damaged or destroyed in an accident. If you own a retail store, clothing boutique, or manufacturing business, you may want to purchase property coverage. Depending on the type of structure your building is made out of and how much coverage you need, you can buy various policy packages.
4 Cost-Effective Tips for Finding Quality Insurance for a Small Business
- Compare Different Types of Coverage
In some cases, it pays more for a specific policy that covers something important to your business. For instance, a policy that covers only your business inventory may be less expensive, but it won’t cover your employees or anyone else who might get injured on your property.
- Compile Insurance Premiums
Look at how much you would pay for every type of coverage and then add them up. Compare the total amount with what you need to know when it comes time to sign the policy. While you may have only a few things that need coverage, you might be able to find a policy that will cover all the categories.
- Find Out What’s Covered
Insurance companies offer different policies. Some cover your employees, while others don’t include any coverage. Most policies have liability protection, which means if someone gets injured on your property due to an accident, you must pay for their medical and other expenses. You can also ask about other specific features, such as vehicles or office space.
- Check the Policy
Before signing a contract, read through it thoroughly. Ensure you know what is and isn’t included and what the different policies include. If you have any questions, don’t feel afraid to contact customer service at your insurance company and ask as many questions as you need to feel comfortable about your coverage.
In conclusion, when you start a small business, it’s essential to buy the right insurance for your business. It can save you a lot of money and protect your business from unexpected expenses. Insurance is necessary for most companies, so ensuring you get the right coverage is essential to success.