What is Business Insurance?
Business insurance protects you from the unexpected costs of running a business. Accidents, natural disasters, and lawsuits could compromise your ability to stay in business if you’re not protected with the right insurance. There are many types of insurance for businesses including coverage for property damage, legal liability, and employee-related risks. Companies should evaluate their insurance needs based on potential risks, which can vary depending on the type of environment in which the company operates. Factors including the workplace environment, number of employees and types of work performed have an impact on the type and amount of insurance needed.
Why Should You Get Business Insurance for Your Small Business?
Large corporations get sued all the time. Sometimes, they’ll even just pay claims that aren’t their fault because it’s easier than fighting and they may have the liquid cash to cover the expense. Most small businesses aren’t able to do that. Here is where small business insurance comes in. Accidents happen and, unlike a big corporation, a small business may not have resources to move between projects or subsidiaries. A single, large claim could stop a small business from performing, which makes reliable insurance for a small business critical.
On the other hand, your business doesn’t need as much coverage as a large corporation. We evaluate your needs and offer you the best small business insurance that will take care of you, at an affordable price.
Factor 1: Number of Employees
You may not be surprised to learn that businesses with more employees face more risk. As a result, the more employees you have, the more coverage you need. But a lot of our customers are also their company’s only employee. Having coverage for yourself is a smart way to protect the company you have invested so much of your time and effort into.
While the number of employees doesn’t lead directly to a higher insurance premium, it’s often the case that our customers with employees pay more for their low cost business insurance than business owners without employees.
Factor 2: Location
Your location includes everything from what kind of environment you work in, to your city, state, or county. Every type of job from office employees to contractors should have an appropriate amount of insurance to offset any loss or damage.
Do you work out of your home? Do you rent space, or use a local coffee shop? These affect the amount of risk you’re taking on, as well as the market for your business and the local insurance regulations that will apply to your business.
All of these considerations can impact your small business insurance cost, and will almost certainly influence the average cost of business insurance where you live.