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Getting Insurance for your Small Business

July 23, 2020


Getting insurance is a crucial step in setting up your small business.
The right commercial insurance will ensure that you, your employees, your space, and all of your stock and equipment are protected. It will have your back, even when you’re faced with unexpected outcomes that threaten to interrupt your operations, drain your savings, or cost you your reputation.

We always recommend getting insurance for small businesses — when you’ve worked as hard as you have to build a business you love, why not do everything you can to protect it?

What types of insurance are available for small businesses?

There are so many types of commercial insurance available to small business owners, but the most common options are:

Commercial Property Insurance

Commercial Property Insurance protects your workspace, its contents, and the surrounding area (including fencing and landscaping). It also helps to cover your costs during any property-related issues that interrupt your day-to-day operations, or force you to stop working completely.

General Liability Insurance

Unfortunately, no matter how hard we try to prevent them, accidents happen. And, when they involve a team member or take place on your property, your business may be liable for any resulting damages. Commercial General Liability Insurance protects your small business from liability issues that could otherwise cost you a lot of money.

Professional Liability Insurance

Even in the most organized and professional establishments, mistakes happen. When they do, Professional Liability Insurance has you covered. It protects your business, your clients, and your reputation by covering the costs of settling errors and omissions claims.

Business Interruption Insurance

Unexpected interruptions can cause businesses to close their doors for days, or even months, at a time (as we’re seeing right now with COVID-19). Business Interruption Insurance helps to cover your costs during unforeseen closures, which can save you from losing what would have been a lot of revenue in a very short amount of time.

Looking for more? Check out our complete list of business insurance policy options

Common Misconceptions Surrounding Small Business Insurance

There’s a lot of misinformation out there about commercial insurance, which often leads to misconceptions among small business owners. Below, we’ve outlined the most common small business insurance misconceptions that we hear along with the truth, to help clear things up!

Misconception: Small Business Insurance is too expensive!
Truth: Insurance rates and premiums vary from business to business. Your Insurance Advisor will work with you to customize the right coverage for you, in a plan that balances your costs with your insurance needs.

Misconception: My business won’t qualify for a specific type of insurance.
Truth: Most businesses qualify for most types of commercial insurance. If you’re not sure about what your business qualifies for, contact us! We’ll help you sort everything out.

Misconception: I don’t need this insurance — nothing bad is going to happen to my business!
Truth: We consider ourselves optimists, too — but when it comes to insuring the small business you’ve worked so hard to build, we prefer the “hope for the best, plan for the worst” mindset. We help our clients get the coverage they need well before they ever need it — so that if the worst should happen, they can rest easy knowing they’re covered.

Misconception: I don’t have much risk in my business.
Truth: Every business has a bit of risk involved. Even the safest bet you could imagine isn’t immune — just look at what happened with COVID-19 this year! In 2020, small businesses with Interruption Insurance likely fared much better than their uninsured counterparts.

Misconception: I already have protection through my landlord or property manager.
Truth: You may have some coverage, but we’re willing to bet that it’s not the right coverage. A property manager seeks out the insurance that will best protect them in unexpected events. You’ll want to make sure that you’re looking out for you.

The 8 Most Common Mistakes That Small Business Owners Make
(And How You Can Avoid Them!)

As insurance advisors, we have (unfortunately) seen many small business owners make these all-too-common mistakes. We recommend reading through them now, so you can avoid making them yourself later!

#1 Waiting too long to get insurance

Getting insurance for your small business should be one of the first things on your list!

#2 Running your business with gaps in insurance terms

Make sure you renew your coverage well before your previous policy runs out.

#3 Not getting enough coverage

Work with an Insurance Advisor to make sure all of your small business insurance needs are met.

#4 Not getting the right coverage

There are so many options for small business owners — which is a good thing! — but making sure you find the right coverage is important. Your Insurance Advisor can help you with this.

#5 Not thinking about the future

Where will your business be 5 years from now? Will you have more employees, a bigger space? And can your insurance keep up? These are all things to consider before finalizing your policy details.

#6 Cancelling coverage without fully understanding the ramifications

Cancelling your insurance shouldn’t be done on a whim. If you think you may need to cancel or amend your policy, take the time to research your options and speak with your Business Insurance Advisor.

#7 Deciding too quickly

We see far too many small business owners applying for insurance without fully understanding the different options available. Commercial insurance is a big decision to make, so the more you can do to arm yourself with the knowledge, the understanding, and the people you need to make the best possible decision, the better.

#8 Not working with a Business Insurance Advisor

Commercial Insurance isn’t something to DIY. Working with a Business Insurance Advisor or Specialist can help you prevent all of these mistakes, among others. It lets you rest easy knowing that you have the perfect coverage for your small business, no matter what happens.

Time to get insurance for your small business?

We’d love to help. Get a quote to get started.

Not sure what you need? No problem. Our Insurance Advisors are ready and waiting to help you figure it out.