3 Business Insurance Options for Small Business Owners

As a small business owner, you're likely no stranger to taking risks and facing uncertainties. But did you know that business insurance can help mitigate some of these risks and protect your investment?

Liability insurance can be a crucial component of your business insurance portfolio, as it helps protect you from financial losses in the event of a lawsuit or claim.

Having liability insurance can provide peace of mind, knowing that you're covered in case something goes wrong. For example, if a customer slips and falls in your store, liability insurance can help cover the costs of medical expenses and potential lawsuits.

Business interruption insurance can also be a vital part of your business insurance plan, as it helps cover lost revenue and expenses if your business is forced to close temporarily due to a disaster or other unexpected event.

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The type of insurance that's right for your small business depends on its specifics and risks. A business owners policy (BOP) is a good starting point, covering three essential coverage types: general liability insurance, commercial property insurance, and business interruption insurance.

If you're a retailer, product liability insurance is a must-have to protect against legal fees from customer complaints. It's often included with general liability coverage for retailers.

For restaurants and food service businesses, liquor liability insurance can provide financial help if you serve alcohol to someone who causes an injury or property damage.

Construction and cleaning businesses should consider tools & equipment insurance to repair or replace stolen or damaged tools and equipment.

Here are some examples of customized commercial insurance packages tailored to different business structures:

Whether you're a contractor, restaurant, retail store, or just starting your side hustle, it's essential to get the right coverage tailored to your profession.

Choosing the right business insurance policy can be overwhelming, but it's essential to protect your business from financial losses. A Business Owners Policy (BOP) is a great option for businesses with property, inventory, or a storefront, as it combines third-party liability coverage with damage to business property, defense costs, and income loss.

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To determine the right policy for your business, consider the number of employees you have. If you have 100 employees or fewer and revenues of up to about $5 million, a BOP might be a good fit. This type of policy can cost an average of $57 per month.

If you need to insure business equipment, consider a commercial property insurance policy. This type of policy can cover damage, theft, or vandalism of your business location, equipment, computers, office furniture, and outdoor fixtures. The cost of this policy can range from $42 to $67 per month.

You should also think about liability risks your business faces. If you're in a profession that requires professional liability insurance, such as financial services, this type of policy may be necessary. The cost of professional liability insurance can range from $61 to $67 per month.

Here are some common types of business insurance policies and their costs:

By considering these factors and types of policies, you can choose the right business insurance for your business and protect yourself from financial losses.

Business insurance costs can vary depending on several factors, including your payroll, number of employees, location, industry, and experience. The cost can be difficult to estimate precisely, but understanding the factors that influence it can give you a better idea of what to expect.

Your industry plays a significant role in determining the cost of your business insurance. For example, insurance for a restaurant will be priced differently than for a handyman or financial advisor. This is because each industry has unique risks and requirements.

You can get a quick estimate of the cost of your business insurance using NEXT's insurance calculators. These calculators can help you determine the cost of general liability, professional liability, workers' compensation, and commercial property insurance. Here are some examples of what you can expect to pay for each type of insurance:

You can also purchase business insurance online with NEXT in about 10 minutes. This can be a convenient option if you have a small business or are short on time.

You can buy business insurance online in just about 10 minutes, which is a huge time-saver.

You can start the process by clicking "Get Instant Quote" and answering some basic questions about your business and operations.

After answering these questions, you'll have a customized insurance quote for recommended coverage.

If you like what you see, you can adjust the package limits and make your purchase online.

Your coverage will begin after payment, and you'll have access to your certificate of insurance.

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Purchasing through an agent is a straightforward process. You'll need to provide information about your business and its specific needs to the agent.

Most people are familiar with this method of purchasing insurance, and NEXT agents are available in every state. They can help you understand coverages and local requirements.

To purchase insurance through an agent, you'll typically need to provide information about your business. The agent will assess your requirements and provide you with policy options.

They'll explain the coverage details, answer your questions, and help you choose the most suitable policy. Once you make a decision, the agent will assist you in completing the necessary paperwork and complete the purchase.

Cost is a significant consideration when purchasing business insurance. Business insurance costs can vary greatly, and it's difficult to give a precise estimate without getting a quote for your business.

Factors that help determine the cost of business insurance include payroll and the number of employees, where you work and the number of business locations, your industry, and your experience.

The cost of business insurance can be influenced by the type of business you have. For example, insurance for a restaurant will be priced differently than for a handyman or financial advisor.

You can use NEXT's insurance calculators to get a quick estimate of how much insurance could cost your business. These calculators include the general liability calculator, professional liability calculator, workers' compensation calculator, and commercial property insurance calculator.

Here are the factors that affect the cost of business insurance:

Understanding Coverage is crucial to ensure your business is protected from unexpected events. Medical Malpractice policies, for example, are designed to safeguard healthcare professionals against costly lawsuits.

To review your policy, it's essential to know what's covered and what's excluded. This will help you avoid surprises when filing a claim, and identify potential gaps in your coverage that could leave your business vulnerable.

Here are some key things to consider when reviewing your business insurance policy:

By understanding your coverage, you can make informed decisions about your business and stay protected from potential risks.

Understanding your coverage options is crucial for protecting your career and personal assets. Medical malpractice insurance is a must-have for healthcare and wellness professionals, as it shields you from potential lawsuits and financial losses.

Having medical malpractice insurance can give you peace of mind and financial security, allowing you to focus on providing top-notch care to your patients. This type of insurance protects your career and finances from unexpected medical malpractice claims.

Technology Errors and Omissions Coverage is a type of insurance that small technology businesses can purchase to protect themselves against claims made by customers.

If you work in the technology field, you may be able to purchase an errors and omissions policy specifically for your type of work. This type of insurance pays legal and other costs from claims made by customers against a small technology business.

Some types of small business technology professionals that could benefit from technology errors and omissions insurance include computer consultants, internet service providers, IT contractors, software developers, and website developers.

The median cost of technology errors and omissions insurance is about $67 per month, according to Insureon.

Here are some examples of small business technology professionals that could benefit from technology errors and omissions insurance:

Understanding what's covered in a business insurance policy is crucial to avoid any gaps in coverage that could leave your business vulnerable. You don't want to be taken by surprise if you need to file a claim, only to find out that there's a gap in your coverage.

Medical Malpractice Insurance is a type of policy that protects healthcare and wellness professionals from lawsuits. This is a specialized policy that's not always included in a standard business insurance package.

To understand what's covered, you need to know two things: what's covered and what's excluded. This is where reviewing the details of a business insurance policy with the help of an agent or broker can be super helpful.

A Business Owner's Policy, for example, typically includes General Liability, Workers' Compensation, and Professional Liability. This is a good starting point to understand the basics of a business insurance policy.

Here are some examples of business insurance policies that can be tailored to different business structures:

By understanding what's covered and what's excluded, you can ensure that your business is protected from potential risks and liabilities. This is especially important for small businesses and the self-employed, who may not have the resources to absorb unexpected losses.

Commercial insurance options are designed to protect your business from various risks. Commercial auto insurance, for example, can cover repair costs, medical bills, and legal fees related to accidents, vandalism, or theft of company vehicles.

Commercial umbrella insurance is another option that can help fill gaps in coverage limits, covering legal fees and settlements that exceed other business insurance policies. It's like having a safety net to catch any unexpected financial falls.

Some business insurance policies, like BOP insurance, combine general liability insurance and commercial property, providing broader protection at a potentially lower cost. This can be a great option for businesses looking to bundle their policies.

Here are some examples of niche coverage options for specific industries:

Employment practices liability insurance is a must-have for businesses with employees. It protects you from lawsuits stemming from claims relating to unlawful hiring or employment practices.

This type of insurance can cover a range of situations, including lawsuits filed in connection with wrongful termination, discrimination, sexual harassment, and retaliation. It can also cover legal fees and settlements.

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If you're sued, your policy could pay legal fees or settlements to claimants. This can help prevent financial ruin and protect your business reputation.

Here's a breakdown of the types of situations that employment practices liability insurance can cover:

Cyber insurance is a crucial aspect of commercial insurance options. It protects businesses from computer-related attacks, such as malware, phishing, and ransomware. Cyber liability insurance will also help pay for the costs of recovering from a cyberattack or data breach.

These costs can include customer and employee lawsuits due to privacy breaches, lost income because of network outages, public relations costs to restore your company's reputation, ransom payments, and regulatory fines. Cyber liability insurance can be a lifesaver for small businesses, with the median cost being $145 per month.

Cybersecurity insurance can protect your business if any electronic or digital data is stolen or compromised. This type of policy can provide liability protection related to lawsuits or cover the cost of upgrading or restoring cybersecurity systems.

If you work in the technology field, you may be able to purchase an errors and omissions policy specifically for your type of work. Technology errors and omission insurance pays legal and other costs from claims made by customers against a small technology business.

Here are some types of small business technology professionals that could benefit from technology errors and omissions insurance:

The median cost of technology errors and omissions insurance is about $67 per month.

Commercial insurance options are designed to protect your business from a wide range of risks. Commercial auto insurance protects against damage related to accidents, vandalism, or theft of company vehicles.

You can choose from various types of commercial insurance to suit your business needs. Commercial umbrella insurance is designed to cover risks not covered by other types of business insurance, such as lawsuit settlements that exceed other coverage limits.

Some types of business insurance offer more niche coverage options. For example, product liability insurance protects businesses that manufacture or produce tangible products against claims for defective products that cause injury or bodily harm.

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Here are some examples of commercial insurance options and the risks they protect against:

Commercial insurance policies can cover a range of costs, including repair costs, medical bills, legal fees, and settlements.

A BOP insurance policy can be a cost-effective way to protect your business. It combines general liability insurance and commercial property insurance, providing broader protection.

BOP insurance is often cheaper to bundle these two policies together. This can help you save money on your insurance costs.

A BOP policy can provide protection for your business in case of accidents or property damage. It can also help you recover from unexpected events that disrupt your business operations.

This type of insurance is designed to provide comprehensive protection for small to medium-sized businesses. It's a popular choice for entrepreneurs and business owners who want to safeguard their assets and operations.

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