It’s critical for today’s businesses to have the necessary insurance coverage. After all, 20% of small businesses fail in their first year. Roughly 50% fail within five years. If you’re going to endure the test of time, you need to make sure you’re properly covered against the unexpected.
This is where business insurance comes into play.
But as with any type of insurance, there isn’t a singular “business insurance” policy that you sign up for. The truth is, there are a lot of different types of business insurance available. The question is, what type of business insurance do you need for your company?
Every business needs basic liability insurance. This will cover you against lawsuits, injuries you might cause, reputation damage, etc. While this is a good start, most businesses can benefit from some additional coverages. Here are a types of coverage you may want to consider adding to your business insurance policy.
Business Property Insurance
If you own any property under your business, you likely know that you need business property insurance. In addition to covering the building itself, property insurance also covers assets belonging to the company such as computers, desks, phones, etc. Should anything become damaged or stolen, you’ll receive compensation for the amount that was lost.
Even if you run your business out of your home, however, you may still need business property insurance. Home insurance policies typically don’t cover items and inventory that are exclusive to your business. You’ll still need business property insurance to cover company assets that are on your home’s property.
If you have business property insurance, it’s often best to bundle it under a business owner’s policy.
A business owner’s policy (or BOP) is a hybrid policy that includes liability coverage, property coverage, and other areas of coverage as needed. BOPs can be customized to meet your specific needs, and they can often save you money on your premiums.
Commercial Coverage for Personal Vehicles
If you’re utilizing a vehicle for work purposes, you’ll need some sort of commercial coverage. This is because commercial vehicles often comes with higher risks and added liability, and they may require more coverage. Vehicles that are used exclusively for work should be insured under a commercial auto policy.
Even if the vehicle is technically your personal vehicle that you use for daily life, you still need to make sure it’s covered for business situations. Otherwise, you could find yourself in a bad situation.
Should you get into an accident while using a personal vehicle for work-related driving, you likely won’t be covered by your personal car insurance. In fact, you could void your insurance agreement altogether. With the increase in side-hustles, ridesharing services, and delivery jobs that utilize personal vehicles, many insurance providers offer commercial add-ons for personal insurance policies.
Business Interruption Insurance
Imagine that you have a restaurant that experiences a serious fire. Commercial property insurance covers damages to your building, as well as the property inside. It does not, however, cover lost wages and profits that might result from your property having to close down. For this, you’ll need business interruption insurance.
Business interruption insurance covers losses and expenses that arise should your business have to temporarily pause operations. The specific situations that are covered, as well as the length of time they’re covered for can vary from policy to policy. Alternatively, there’s extra expense insurance, which can also provide coverage for unforeseen situations and expenses.
Cyber Liability Insurance
In today’s increasingly digital world, it’s not just your physical assets that you need to protect. Data breaches and system failures can cost big money. The average cost of a data breach is $3.86 million. Cyber liability insurance is a relatively new type of policy that can provide coverage for lost profits, computer forensics, data recovery, ransom payments, and more.
Businesses of all sizes are regularly attacked by hackers and malware. Don’t assume your company is too small. Some of today’s malware programs are specifically designed to target small businesses.
The Coverage You Need at a Price You Can Afford
The world of business insurance can be complex and confusing. Many businesses don’t realize they’re under protected until it’s too late. On the other hand, some businesses end up with policies and coverage that they don’t actually need, resulting in unnecessary expenses.
The best way to make sure you have the coverage you need is by working through an experienced insurance agent.
At Link-Hellmuth, we help businesses understand what they need coverage for, and then we shop their needs around to get the best price possible. In the end, our clients receive better coverage at a more affordable price.
Don’t get caught by surprise. For affordable, effective business insurance in the Springfield, Ohio area, contact Link-Hellmuth today!