Do I Need Small Business Insurance?

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As a business, commercial insurance is integral for ensuring that you can manage the risks your work may face both while operations are ongoing and even after a product, service or job has been completed/delivered. No matter the size of your business or how long it has been going, every owner should consider purchasing the right insurance. This is true even if your business is a small start-up.

Since there is no way to predict what could happen, the task of looking for small business insurance can be worrisome and overwhelming. Without asking the right questions and taking the time to assess their options,  owners may potentially over-insure or under-insure their business. This is not ideal on either end: under-insuring can mean leaving your business exposed, and over-insuring can mean paying for more than you need.

Here’s a quick guide to small business insurance:

Choosing the Right Amount of Insurance Coverage

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Because we cannot predict risk one hundred percent, purchasing small business insurance can seem like an arduous process. Fortunately, there are a few ways you can choose the right amount of coverage as a small business owner which can help ensure you are getting what you need and nothing extra.

Pick a broker that knows small business

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Working with a broker is a great way to reduce the time it would ordinarily take you to find a quote. However, not all brokers work exactly the same. Find a broker who understands startup insurance and the needs of your operations so that that they can lend a hand when choosing a policy best for your business. Visit bullfroginsurance.com to inform yourself more.

A broker who has experience in small enterpreneurship insurance may also have access to competitive quotes not available on the general market. This means more options for you and more chances to find a quote at a lower rate.

Consider asking a broker about ways to reduce rates

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A broker knows commercial insurance in and out and can get to know your business’ requirements a bit better with a one-on-one chat. If budget is a concern of yours, you may be tempted to cut corners. A broker helps prevent you from needing to resort to that by offering suggestions on premium reduction strategies (like improving your risk management!) and informing you about what discounts you may be eligible for.

They may offer suggestions like having your employees take a safety training program during orientation, installing security systems and fire sprinkler systems, maintain proper cyber security protocol, increase your deductible, and annually review your coverage needs (while adjusting where necessary.)

Make an inventory

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To determine your coverage needs, making an inventory of all your potential risks and biggest assets might help give you an idea of where your exposures lie. Consider all the potential liabilities or losses you could suffer. Account for all your property (your house, if you work from home, commercial buildings, outbuildings, sheds, etc.) as well as any machinery, equipment, vehicles, or tools that you use daily. If you have employees, you will want to consider the risk of injury to them and if you use technology to store data or finances, make sure you take that into account as well.

If you aren’t sure where to start, a broker could be of help to you. A broker who specializes in small businesses insurance may have experience servingstartups like yours and will know how to assess your coverage needs as accurately as possible.

For home-based businesses

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If you work out of home, make sure you are making a distinction between commercial and personal insurance. You may have home insurance already, but your home insurance will not include coverage for any damages caused by your commercial activities. Discuss with your small business insurance broker about acquiring a rider for a home-based business or ask about possibly purchasing a separate small business insurance policy.

Types of Small Business Insurance

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Once you are aware of your coverage needs, it’s time to buy the insurance policies right for your vendor. Commercial insurance comes in many forms and different options exist for the different ways we run our businesses. Here are some of the most common types of commercial insurance that small vendor owners choose to protect their operations:

● Commercial General Liability
● Professional Liability (Errors & Omissions)
● Property Insurance
● Cybersecurity Insurance
● Crime Insurance
● Business Interruption Insurance
● Commercial Automobile Insurance
● Directors & Officers Insurance
● …and more

These are only some of your choices. Different entrepreneurship needs different insurance types – or even multiple. A broker can tell you about what options are available to you. They may offer suggestions based on your requirements, or even offer you suggestions as to what endorsements you may want to consider.

Small Business Insurance Offers Peace of Mind

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Managing the risks that your vendor’s faces are one way to ensuring you can keep your business going for years to come, but it is not guaranteed to protect you from everything that could happen. Commercial insurance for small entrepreneurship is a great safety net in the event that anything should happen – after all, it’s better to be “safe than sorry.” Small business insurance offers startup owners, their employees, and even their clients the peace of mind that they deserve. In some cases, certain types of insurance may be required by law or by the hiring body in order for any work to begin. In addition to this, some insurance can help boost your reputation and show your clients that you are in a good place should anything happen during the job – or even after operations have been completed.

If you are a company owner, you need insurance. It does not matter if your business is small or large – if anything, small vendors may need insurance even more because they don’t have the same reputation or funds to support proper risk management procedures.