Commercial Insurance for Small Businesses Protects Investments

Commercial Insurance for Small Businesses Protects Investments

Small businesses are the foundation of the American economy. About 28 million small business were operating in the U.S. as of 2013. About 120 million Americans, or 50 percent, are employed by small businesses. They are also responsible for the creation of over 65 percent new jobs since 1995. Small businesses are a great option for those who want to be able to work with clients directly, get results without corporate bureaucracy and reap the benefits of their hardwork. The Small Business Administration estimates it costs around $30,000 to launch a new business. You should include in your budget the cost of commercial policies, which will protect your investment, as well as hiring employees, securing an office, obtaining licenses and hiring staff.

Commercial insurance comes in many different forms. Your business type will determine which policies will protect your investment. General liability insurance is a must for all businesses. This type of insurance will cover any damages if you or your employee, your product or service, injure someone. Property insurance offers protection to most businesses, as it covers the loss of inventory, equipment, and location. Some policies will also cover the property that you control, such as your client’s. If you own a business for watch repair and it burns down, the watches that you are repairing will be covered by your policy.

A commercial auto insurance policy is wise if your business involves the transportation of employees or equipment by vehicle. A commercial auto insurance policy covers damage caused by collisions. The policy can cover damage caused by company employees who drive their own cars for business. Professional liability insurance is a good option for companies that provide professional services. It’s also called malpractice insurance or errors and omissions coverage. This type of insurance covers damages caused by improper service for lawyers, accountants and notaries. It also covers real estate agents, salons, hairdressers, etc.

It can be overwhelming and costly to choose from the many policies available. Ask about a policy that offers a package of services for a reduced premium.

There are several steps you can do to ensure you don’t need to use your policies. You can hire a lawyer to review your contracts or give you advice on business practices. If your business is found to be liable, you can protect your assets by incorporating your business. Protecting files that contain client information or credit cards numbers is also important.

Talk to a commercial agent about policies that could benefit your business. A professional in the industry can identify opportunities to cover a litigious client and make appropriate recommendations.


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