Small businesses are incredibly important to the U.S. economy and to American workers in general. According to the Small Business Administration (SBA), small businesses accounted for 64% of the net new jobs created between 1993 and 2011… to put this statistic into perspective, that’s 11.8 million jobs created by small businesses in the United States alone in the span of less than 20 years. With the number of small businesses growing year by year, it’s vital for the owners of these businesses to make sure that their employees and assets are covered properly.
Our list below outlines the 5 most important insurance policies any small business must have in order to avoid paying massive amounts of money in the event of a lawsuit or claim:
1. Workers Compensation Insurance
Workers’ Compensation insurance will provide wage replacement and medical benefits to an employee who is injured on the job. This particular coverage is necessary for all employers who have at least one full-time or part-time employee. If your business has “sub-contractors” or 1099 employees, you may still need coverage. Workers comp benefits vary by state, so it’s important to speak to your own insurance provider in the event of a claim to see what is covered based on where you live.
2. General Liability Insurance
A Commercial General Liability policy provides legal representation and pays for covered damages caused by the business owner or an employee. This coverage is typically required when entering into a contract with a third party or pulling permits in a city like Philadelphia. If you or your employees: own or lease a property, have clients visit your location, visit the locations of your clients, or manufacture/sell any products, General Liability insurance is essential for your business. To put it simply, General Liability policies cover the most basic business insurance needs.
3. Commercial Auto Insurance
A Commercial Auto insurance policy provides coverage options for both business and personal usage of the vehicle. In addition, this coverage typically allows you to buy higher limits of coverage than on a personal auto policy and more adequately protects your business. If you have vehicles of any kind that are used for business purposes, you need Commercial Auto insurance for liability and damage protection.
4. Commercial Property Insurance
Last but not least. Commercial Property insurance is a type of coverage that protects any property owned by your business in the event of a covered loss. For example, a fire could incur hundreds of thousands of dollars worth of damage to your property and its contents. However, a Commercial Property policy would serve to cover the costs of these damages. It also covers any lost income during any suspension of operations due to a covered loss. Fire, theft, burst pipes, vandalism, and storm damage could happen to any small business, so make sure you’re covered in case it happens to yours!
5. Business Owners Policy (BOP)
If you’re the proud owner of a small business, this is a perfect policy for you to invest in. It bundles General Liability and Commercial Property insurance into one package so you don’t need to worry about purchasing two separate policies. Additionally, a BOP can be altered to cover a variety of risks depending on your own business’ needs. Make sure you purchase separate Professional Liability, Workers Compensation, and Commercial Auto insurance policies as these are not included in a BOP.
Regardless of your industry as a small business owner, it is essential that you invest in these 5 policies… especially considering they could save you a lot of time and money down the line!
Call Risk Averse Insurance in Media, PA to discuss your business or personal insurance.
Risk Averse Insurance is an insurance agency in Delaware County that specializes in providing high-quality insurance products at an affordable price.