- 44% of the businesses have never had business insurance.
- 21% of the businesses had insurance at one time, but let the policy lapse.
- 78% of the businesses currently have no insurance.
1. Policy OptionsThe type of insurance you need depends on what sort of business you run, but these are the most common policy options:
- General Liability Insurance – This type of coverage protects your business from liabilities resulting from bodily injury, property damage, legal settlements, and much more.
- Property Insurance – If your business and the property inside is damaged in a strong storm or because of a fire, this type of coverage defers some or all of the costs.
- Professional Liability Insurance - When damage is caused by mistakes on the part of your business, this type of coverage helps to limit the damages. It is highly recommended for service providers like accountants.
- Product Insurance – These policies will protect your business if damage is caused to persons or property as a result of faulty products that your business produced.
2. Policy ConsiderationsBusiness insurance is an important investment, but it’s also an ongoing expense. Ideally, you will take out the exact coverage you need and nothing extra. Keep these considerations in mind as you craft your coverage plan:
- State Requirements – Some states require businesses to carry certain policies at specific limits. Contact your state’s Department of Insurance to explore whether any of these mandates apply to your business.
- Business Risks – How much do you have to lose, and how likely is it that a catastrophic event will impact your business? The answers to these questions reveal what type of coverage you need at what levels.
- Budget – You can’t spend what you don’t have. Calculate how much you can spend on business insurance monthly/yearly, then investigate how much coverage you can realistically afford.
- Under-Coverage – A policy with low coverage limits provides very little protection. Don’t be lured into a false sense of security by committing to policies that leave gaping holes in your protection.