Getting the right insurance for your small business is crucial since it can have a big impact on your operations and finances. Every business is different, so see the individual page for your particular side gig for extra information as this primer will remain generic to any business.
Here's a guide to help you navigate the process:
1. Research and Comparisons
Take the time to research and compare different insurance options. This is really important because the right insurance can save your business from major financial hits. Use online comparison tools and reach out to several insurers to get quotes and learn about their offerings.
2. Work with a Broker or Independent Agent
Instead of going directly to an insurance company, which might limit you to their specific products, seek out a broker or independent agent. They represent multiple insurance companies and can offer a range of options. This can help you find the most affordable coverage for your small business.
3. Understand Key Types of Insurance
Here’s some different insurance types you'll want to know about:
- General Liability Insurance: Covers third-party bodily injury, property damage, and personal injury claims. This is key for protecting against lawsuits from clients or other third parties.
- Commercial Property Insurance: Protects your business property, including buildings and equipment, from risks like fire, theft, and natural disasters.
- Workers' Compensation Insurance: Required in most states if you have employees, this covers medical expenses and lost wages for employees injured on the job.
- Commercial Auto Insurance: Covers vehicles used for business purposes. This includes liability for bodily injury and property damage, as well as coverage for vehicle damage.
- Professional Liability Insurance: Also known as Errors and Omissions (E&O) insurance, this covers claims of negligence, errors, or omissions in the services your business provides.
4. Verify Information Sources
Be cautious of the information you find online. Many videos and articles are created by people or companies looking to sell insurance products. Cross-check information with reliable sources like state insurance departments, industry associations, and consumer review platforms. Look for unbiased reviews and ratings from recognized agencies like A.M. Best, Moody’s, and Standard & Poor’s.