It can be both thrilling and scary to start a business. Even if your business is small, you may feel more at risk when your time and money are at stake. Business insurance provides coverage to protect your investment in case of an unexpected event. But having a small business is quite different from running a large enterprise when it comes to insurance policies. There are many questions you may need to ask before you start your business. So let’s look at the top small business insurance FAQS.
Top Small Business Insurance FAQs
Insurance companies aren’t known for being simple. We understand – we have heard the frustrations of first-time company owners who want to protect their business so that they can return to running their own operations. That’s why we have taken today to list the top small business insurance FAQs that we get when talking to new and prospective customers about the best business insurance plans.
How Much Does Small Business Insurance Cost?
Even small business insurance premiums may vary from one company to the next. The cost of your policy is calculated using many different factors including your industry, business size, number of employees, and even your location. Some agents can calculate an average rate for you, but your own rates may vary greatly.
Understanding a breakdown of your costs can help you secure the best plan with great prices and protection for your business. Small business policies are more affordable because they have lower liability than highly populated or dangerous operations. This is because small businesses can lose less revenue and have fewer assets to liquidate when things get bad.
What is General Liability Insurance and What Does it Cover?
The most basic and default type of insurance you need for your business, general liability provides coverage for the most common types of lawsuits that can occur in your day-to-day business operations. An insurance policy can cover damages, claims, and attorney fees arising from the business’s products, operations, or services.
These may include personal injury or property damage to customers, vendors, or partners, as well as bodily injury or property damage to your business. Although general liability coverage is not required by law in all 50 states, we always encourage small businesses to have it anyway.
Do I Need to Budget for Company Insurance?
Insurance expenses should always be included in your business plan. You’ll need to know what payment options are available and when. To determine how much insurance you will need, it is important to separate your company assets and personal belongings when you start out. Talk to a tax professional or legal advisor to formalize the structure of your company.
What is Workers’ Compensation and What Does it Cover?
Different benefits and treatments can be used to administer workers’ compensation. The Department of Labor states that the compensation programs are designed to achieve the following:
“These entities serve specific employee groups… by mitigating financial burdens resulting from workplace injuries.” Essentially, this type of insurance provides financial compensation for workplace injuries or illnesses. If someone gets hurt on the job, you’ll be glad you had workers’ comp for your company.
How Much Does Workers’ Comp Cost?
There are many factors that can determine the cost of a workers’ comp insurance plan. When speaking with an insurance agent, you will likely be asked the following questions:
- What kind of jobs do you have?
- Which part of the world are you?
- How many employees do you have?
- Are you aware of any previous claims?
All of these elements will be evaluated before you begin looking for coverage. You can reduce your premiums by looking for other payment options or incorporating training programs to earn credits on your policy.
Ensure Your Growing Business with the Right Small Business Plan Today
Managing your new business alone can be quite a challenge. Thankfully, our agents can help you find the best liability plan for your company’s needs. Get in touch with us today and learn more about our exclusive Safecall business insurance plans and premiums. Protect your company in the event of an accident and continue expanding upward towards success!