Small Business Insurance Basics and How to Secure Coverage

As the owner of a small business, you help form a crucial part of your community, as well as the local economy. Even the most modest startups can eventually amount to lucrative financial gains and exciting opportunities. Still, along this journey to success, you must also account for the possibility of things that could go wrong. Accidents, errors and other unexpected hurdles can happen any time, often threatening your finances and future. This makes understanding and securing the right small business insurance a dire need.

What is Small Business Insurance?

Small business insurance is not always a named product available from carriers and agencies. Instead, this term may refer to a collection of coverage options and policies you can compile to form a multipart financial shield.

Your policies act as binding agreements between your company and its insurance company. As long as your coverage remains valid, you can submit a claim for financial aid following covered incidents, which could soften financial consequences that might otherwise incur catastrophic costs.

What Does it Cover?

Every small business has unique circumstances that may impact its exact coverage needs. However, several types of insurance may transcend industry lines and other specific situations in terms of their importance. The core of your small business insurance portfolio may often be composed of the following:

• General liability insurance

• Commercial property insurance

• Business interruption insurance

• Workers’ compensation insurance

• Professional liability insurance

• Commercial auto insurance

• Cyber liability insurance

Small businesses may also have access to specialized insurance products, such as business owners policies (BOPs). A BOP can combine several types of coverage—usually general liability, commercial property and business interruption insurance—under a single arrangement, potentially reducing total costs.

How Much Does Small Business Insurance Cost?

The various pieces and financial protections that make up your insurance portfolio can all have varying costs. Factors that may influence your rates often include the following:

• Location

• Industry

• Workforce size

• Years in business

• Estimated annual revenue

• Company assets

• Claims history

• Coverage details (e.g., types of insurance needed, deductibles and policy limits)

Learn More

Contact Above All Insurance today to explore coverage options for your small business or compare personalized quotes.

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.