Running a business is challenging. That may not be breaking news, but it is what it is. There are many contributing factors as to why that is the case, but managing office space, dealing with customers, and fighting your marketplace competitors; managing your own business is arguably one of the hardest things to do!
Another thing that business owners have to deal with, other than all the challenges mentioned above, is insurance. Insurance? Yes, insurance.
Having insurance for a small, growing business is essential. Heck, having insurance coverage for a large corporation is important!
The Hartford Financial Services Inc. says it best: “Businesses need business insurance because it helps cover the costs associated with property damage and liability claims. Without business insurance, business owners may have to pay out-of-pocket for costly damages and legal claims against their company. Depending on the incident, this could be a financially devastating scenario for business owners.”
With that being said, what are the types of insurance that business owners should consider? There are so many different policies out there that it can get overwhelming. Still, there are most definitely some policies that should take precedence over others, especially depending on the type of business you are running. But for starters, take a look at some of the most common insurance coverages that business’s owners sign-up for:
General Liability Insurance
General Liability Insurance is most commonly referred to as business liability insurance. What does that mean? GEICO defines business liability insurance as” . . .a type of insurance policy that helps protect businesses from claims that happen as a result of normal operations. Business liability insurance typically provides coverage to small businesses for bodily injuries, medical payments, advertising injuries, and more.” Sounds great, right? That is why general liability insurance is such a popular insurance policy for business owners.
A new and growing segment of insurance, cyber insurance, has become very important. Why? Well, with technology continuing to grow faster than ever (sorry, Moore’s Law), so have the number of phishers and hackers that try and pry away as much personal information as they can. As a business owner, the last thing you want to have happen is losing confidential private and business insurance. So, with cyberattacks on the rise, it is important to get you and your business covered.
Worker’s Compensation Policy
Defined, workers’ compensation is “. . .a government-mandated system that pays monetary benefits to workers who become injured or disabled in the course of their employment. Workers’ compensation is a type of insurance that offers employees compensation for injuries or disabilities sustained as a result of their employment.”
Worker’s compensation policies are very important for high-risk industries such as construction, landscaping, and cleaning services. According to insureon.com, 20% of worker fatalities in the private industry occur in construction, so that should be a high priority for the owner of a construction business.
It is also worth mentioning that there is a lot that goes with worker’s compensation. Worker’s compensation law is something that is very intricate, going into detail after detail to ensure there is fair compensation. This may require you, or the given business owner, a lawyer with experience in the field.
“Commercial umbrella insurance gives you extra coverage to help pay for costs that exceed certain liability policy limits. Without this type of commercial insurance coverage, you’d have to pay out of pocket for liability claims that cost more than your coverage limits.”
A commercial umbrella policy is a very popular form of business coverage. It covers anything and everything for a business owner. Instead of purchasing five different insurance policies, people have the opportunity to sign up for one umbrella policy and receive coverage on medical bills, legal costs, property damage, and more.
In the same breath, a commercial umbrella policy may end up costing more than an individual policy like a general liability policy, worker’s compensation policy, cyber insurance, et cetera. So, with that in consideration, you (the business owner) need to look at your finances. What can you afford? What is the best route to go in? If you are a part of a corporate juggernaut, of course, you can spend up for an umbrella policy and more. On the other side of things, if you are running a small business, you need to prioritize your insurance needs in order to get what you need, while getting the most bang for your buck.