What Is Business Insurance And What Does It Cover?
Business insurance covers financial losses stemming from a variety of events that can negatively impact a business’s operations.
There are many different types of business insurance, and they provide coverage for different types of situations. The most important and common types of insurance cover employee-related issues, legal liability, and property damage.
You can determine the types of coverage your business needs by analyzing the risks involved in your industry, the value of your investments, and your company’s legal structure.
For example, a solo entrepreneur doesn’t need to waste money on employee insurance. On the other hand, a construction company with employees working in potentially dangerous conditions should absolutely have insurance to protect them.
Why Is Insurance Important For Small Businesses?
As a small business owner, you need to ask yourself, “What is business insurance supposed to do for my business?”
Some small business owners think they’re exempt from legal action, accidents, and other concerns because of the size of their operation — don’t make the same mistake.
Small to medium-sized companies are at greater monetary risk than larger corporations because they can’t absorb a financial blow as easily. Without the proper protection, solo entrepreneurs even risk leaving their personal finances exposed.
The very size of these businesses makes them more vulnerable in the event of a financial disaster. That’s why smaller companies need to invest in quality insurance coverage to ensure their investments are protected.
What Is General Liability Business Insurance?
General liability business insurance, also known as general liability insurance, protects you from issues that might occur through your typical business operations, including:
- Personal injury
- Property damage
- Bodily injury
- Loss of Income
How Much Is Business Insurance?
According to Insureon, 48% of small businesses pay anywhere from $300 to $600 annually for their general liability insurance policies. It’s best to work with an insurance professional to get an accurate estimation of all the insurance you might need for your business.
Business insurance cost will depend on a variety of factors, including:
- The type of insurance you’re buying
- The amount of coverage you want
- The overall value of the business or investments being covered
- The quality of the insurance provider you’re using
It’s important to factor insurance premiums into your overall budget since they are a critical part of protecting your business investments.