We’ve have previously written about Why Your Business Needs Commercial Insurance and want to continue. Your small business insurance needs differ than those with many employees, locations, and more. Read on to learn more.
What Type of Small Business Insurance Do I Need?
The short answer is yes. Insurance policies for small business can help protect your assets from unforeseen circumstances. You may have to pay out of pocket to repair or replace damaged property without this coverage. In fact, one incident could wipe your small business off the map.
For example, what if a fire breaks out your rental property and causes severe damage? Are you covered under your lease? Probably for the property itself but not for the contents. Your lease will outline everything. Commercial insurance can assist you with repair or replacement costs in addition to any insurance that comes with your lease, if any.
Every small business will face its own unique set of risks. You can’t find a one-size-fits-all for your insurance. Keep the following in mind when researching quotes:
- Your type of business (restaurant, attorney, etc.)
- How many full, part time, and contract employees you use.
- Annual gross and net sales in products and/or services for your business.
- An organizational chart for your business.
- Amount of locations and approximation of how many visitors each year to each location.
Rental Commercial Insurance?
As in the above, say your renal property is destroyed in a fire. Your lease covers the property but not the contents. You will want rental property insurance to cover the cost of your office equipment, inventory, etc. You may also need personal injury protection in the case that you or one of your workers are injured in the damage.
General Liability Insurance
This type of insurance protects your small business from both property damage and bodily injury liability. As an example, say a visitor slips and falls on your property. You may be liable even if it occurred in the parking lot or even if your business does not take unsolicited visitors. General liability can help cover you if they look to you for damages.
Professional Liability Insurance
Those of you who offer professional services will want to look into this type of insurance. Say you are an HVAC company. You are hired to install a new air conditioning unit. An accident happens that damages the unit and the property itself. Professional liability will help cover the costs. In fact, many potential clients will not hire a small business that does not have this type of insurance.
Commercial Auto Insurance
Does your business use vehicles in its day to day work? You’ll need a commercial auto insurance policy, which is different from the insurance you use for your personal vehicle. In fact, those of you who do ride sharing for a living or as a side business may also need commercial auto insurance.
Visit The Texas Department of Insurance for more information on small business insurance or the accompanying agency in your state.
Houston Bookkeeping, Taxes, & More
Remember that each state has its own rules for small business insurance. As a result, it is useful to have an insurance agent on your side. It is also useful to have a bookkeeper to help you write off your small business insurance and other costs. Feel free to contact us if you work in the area and need help doing so.