As a business owner, you face multiple responsibilities daily. It can be overwhelming to navigate potential threats and risks concerning your business while also making decisions that will impact the long-term future of your business. Purchasing small business insurance gives you a safety net during such emergencies. With the correct insurance, your business is protected if a customer is injured while they are on your property or if any of your equipment is damaged or stolen. State laws generally mandate that business owners purchase some level of insurance to legally operate their business. Let’s take s a closer look.
Types Of Legally Mandated Small Business Insurance
- Workers Compensation Insurance
Workers compensation provides coverage for any medical care expenses incurred due to your employees getting injured in the workplace. This also covers your employees’ lost wages while they are unable to work. In the unfortunate event that one of your employees suffers a serious injury and passes away, workers compensation may assist with funeral expenses and provide survivor benefits to their loved ones.
- Liquor Liability Insurance
If you operate a bar or restaurant, it is likely that you will likely be legally required to purchase liquor liability insurance. Liquor liability insurance covers your business against potential property damage that is caused by an intoxicated patron after you have served them alcohol. This insurance covers your legal fees and any settlements that may occur if your business is held liable for the damages.
- Unemployment Insurance
Unemployment insurance provides financial benefits to your employees. Under this, the insured receives benefits in case they have lost their job for no apparent fault of theirs. While federal law regulates the guidelines, each state has a unique unemployment insurance program. Your payroll taxes should help fund your unemployment insurance package.
- Professional Liability Insurance
Professional liability insurance covers your business against any serious errors that were made while completing a job. State laws commonly mandate that individuals working in the medical, legal, and real estate industries purchase professional liability insurance. States that mandate professional liability insurance include Colorado, Oregon, Kansas, New Jersey, Texas, New Mexico, and North Dakota.
Other Types of Small Business Insurance
- General Liability Insurance
General liability insurance protects your business if you are held responsible for causing property damage or an injury. If the impacted party chooses to sue, general liability insurance covers your legal fees during the process.
- Business Interruption Insurance
Business interruption insurance helps protect your business during emergency situations. The insurance covers your business if you are forced to shut down for an extended period by allowing you to continue to make payroll and other important functions of your business.
There are multiple variables that influence your small business insurance rates. For instance, your premiums will cost more if your business is involved in a high-risk industry. Additionally, having more employees will result in increased workers compensation expenditures, which will impact your rate. Any prior claims on file also impact your small business insurance rate.
Purchasing Small Business Insurance
It’s recommended that you research different types of coverage so that you can find a policy that directly aligns with the needs of your business. It’s also recommended that you assess multiple quotes before making a decision. Shopping around can help you find the best rates.
Consult With Advanced Insurance Group
It’s recommended that you sit down with your insurer and review your policy on an annual basis. As your business grows, you can adjust your coverage accordingly. Contact our team at Advanced Insurance Group if you have any questions, and we will be happy to assist you with any of your insurance needs.