Your business is a vital part of your lifestyle. You worked hard to get where you are, and you need the right insurance coverage to protect your assets. Most people understand they need home and car insurance. However, business coverage is often neglected. In fact, 75% of U.S. businesses are underinsured, and 40% of small business owners have no insurance at all.
The biggest reason small business owners are underinsured is that they believe they can’t afford coverage. Sadly, the cost of an insurable event is considerably higher than the cost of maintaining proper coverage. While business insurance is something you hope you never have to use, there are a variety of risks faced by small business owners every day.
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What Is Business Insurance?
Like personal insurance and vehicle insurance, business insurance protects you against potential risks that could lead to financial disaster. While typical insurance policies are fairly uniform, businesses face a variety of risks that require specialized coverage. Business insurance is usually composed of a variety of insurance policies to protect against different business risks. The most common risks faced by small business owners include
- Property Damage
- Loss of Income
- Employee Injury or Illness
- Lastly, vandalism
Discussing the details of your business with your independent insurance agent can help you learn about the types of policies you need to protect your unique business. You’ll likely need to provide information about the location of your business, what type of business you own, and how many employees work for you. Then, your agent will use the information to share details about ways to protect yourself from potential risks.
Types of Insurance Coverage You Need to Protect Your Small Business
Many business owners make the mistake of thinking that small businesses face fewer risks. Not only do small business owners face significant risks, but state laws require some coverage. Every small business should have certain types of insurance coverage to protect against financial risks. These are some of the most common business insurance policies that small business owners require.
Worker’s Compensation Insurance
If you have any employees, Massachusetts state law requires you to carry worker’s compensation insurance. This policy protects your employees in the event of a work-related injury. Worker’s comp will cover medical fees, legal fees, and a portion of an employee’s wages while they recover from a work-related injury. Failing to purchase the minimum amount of worker’s compensation coverage can result in penalties and fines.
Liability claims are a risk that all business owners face. Whether you run a commercial business that is open to the public or sell products or services your customers use at home, you can be held responsible for a variety of issues. There are two main types of liability coverage you need.
- General Liability: This policy helps pay for lawsuits that claim your business caused bodily injury or property damage. These claims can arise from a wide variety of causes like a trip and fall event at your place of business or an issue with your products while they are in use.
- Professional Liability: This policy is sometimes referred to as errors and omissions. It’s designed to help you pay for a lawsuit that claims you made errors in the services you provide. This coverage may be related to professional claims or clerical errors made by you or your employees.
Commercial Property Insurance
Even if you run your business from your home, you can benefit from commercial property insurance. The policy protects your business space, equipment, supplies, and business inventory from covered events like fires, weather-related damage, vandalism, and theft. Commercial property insurance provides coverage for lost income while undergoing repairs.
Commercial Auto Insurance
If you or any of your employees drive for work purposes, you may need commercial auto insurance. Many small business owners think their personal auto insurance will provide coverage. Unfortunately, this is rarely true. If you or one of your employees is involved in an accident while performing business tasks, personal insurance will not cover the incident.
Business Owner’s Policy
While every business is unique, small business owners face many of the same risks. For this reason, insurance providers often supply adjustable packages designed to give small business owners a variety of coverage options for complete business protection. A business owner’s policy (BOP) is a combination of several types of coverage to supply you with custom insurance coverage at an affordable price. The policy will provide you with necessary business coverage and the option to add additional policies to fit your unique needs.
How to Find the Insurance Coverage You Need to Protect Your Small Business
Insurance coverage for your business isn’t a decision you should take lightly. Indeed, protecting your business isn’t just about the property you own, or the space you work from. You need coverage for the tools, equipment, technologies, and materials you use to keep your business running. Many business owners don’t have a full understanding of the coverage they have or gaps that leave them exposed to potential risks.
To avoid being underinsured, you need an experienced insurance agent you can trust. Indeed, your agent should be comfortable answering any questions you have, and explaining all the details of your policy. It’s helpful to compare policies and prices to ensure you get the coverage you need at a price you can afford. An independent insurance agent can help you compare insurance policies provided by a variety of carriers so you can get the policy that best suits your needs.
To learn more about business insurance for your small Massachusetts, get in touch with the experts at LoPriore Insurance today. In fact, our motto is insurance that fits your lifestyle. We understand that your business is an important part of your lifestyle and you need the unique coverage that offers the protection you require without a bunch of costly add-ons you can’t afford. Our agents are standing by to answer your questions, provide a quick quote, or share information about our available policies. Let us take care of your insurance needs so you can protect your small business.