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Five Facts about Small Business Insurance

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If you own and operate your own business, getting insurance is crucial. Business insurance is going to protect you against risks you are exposed to, including those that are plausible as well as the least likely risks such as from natural disasters. It is important to choose your small business insurance policies wisely to offer your business the best protection available. It will ensure the success and longevity of your business even if you experience a crime, damage to your business property, or get in the middle of a lawsuit.


Types of Small Business Coverage

Small business insurance isn’t just one type of policy, rather different policies each having a different range of coverage. In most cases, each business insurance policy will cover its own set of risks. Some of the common types of business insurance policies or small businesses include general liability, business property, crime and cyber liability insurance, worker’s compensation, commercial auto insurance, umbrella insurance, and a business owner’s policy (BOP) which is a package policy that combines different types of policies and coverages.


Why you Need Small Business Insurance

As a small business, you are at risk for any number of things and should protect your risks. Each time an unexpected event occurs, you will have to pay for the repairs, replacements, or lawsuits from your own pocket or business expense. Just one flood or fire that destroys your property could cause you to be bankrupt after replacing everything and repairing your business property structure. However if you have small business insurance, you will get most if not all of these costs covered. In things like liabilities where a customer could get injured on your property and sue you for damages, insurance becomes vital.


Risks and What Coverage you Get

When it comes time to choose the right insurance policies for your small business, take into consideration what your most probable risks are and go from there. If you live in an area where snow and rain, earthquakes, or hurricanes are common, right away you know you want business property insurance. Also, don’t forget about policies covering risks that might not be common but would still cause sufficient damage, such as fire and flood insurance.


How to Save and Lower Premiums

Many small business owners find the cost of business insurance to be the most intimidating factor. Luckily, there are ways to lower costs and save money on your insurance. Always shop around before deciding on one insurance provider. By increasing your deductible, you will have a lower premium. The deductible isn’t paid until you need to use the insurance policy, so this can helpful if you want to save on the policy right away. You can also save by getting a package policy such as the BOP, which includes multiple coverages in one policy. Also, speak to the company about other ways to save, such as paying less on your crime insurance if you have surveillance equipment.


Limits and Exclusions

Every business policy will have limits and exclusions so always read the fine print before choosing a policy. One insurance provider might have different exclusions from another.