4 Types of Insurance Your New Small Business Will Need And Why

4 Types of Insurance Your New Small Business Will Need And Why

The U.S. Small Business Administration (SBA) estimates that during any given year around 414,000 new small businesses are established. At the same time, there are usually another 396,000 small businesses that close. This SBA statistic simply shows how challenging being a small business owner can be.

In your efforts to grow your company, don’t make the mistake of focusing only on the most obvious demands such as employees, budgeting, marketing, and so on. It’s also critical to invest in business insurance for those unexpected setbacks.

• Which types of business insurances are good for property, employees, website, and vehicles?
• Why do new small business owners need business coverage?
• Where can new small business owners buy business insurance?

Basic Types of Business Insurance for Entrepreneurs and When They Are Needed

Insurance insiders agree that small businesses are more likely to survive losses by having insurance coverage in place right from the start. All companies, regardless of industry or size, benefit from having four basic business insurances: property, workers’ compensation, cyber security, and commercial auto.

You lease a commercial space.

Maybe you rented a commercial office space or retail shop to conduct your business operations. Same as having rental insurance for an apartment, it’s important to have coverage for the contents of your leased location. For example, let’s say there’s fire and all your computers, equipment, office furniture, and inventory is ruined. Your landlord isn’t responsible for replacing all those items and quickly restoring your workspace…you are.

By having Commercial Property Insurance already established, you’ll be able to file a claim and recover the funds needed to get back to work.

You hire an employee/employees

Workers’ Compensation is business insurance that pays medical bills and lost wages to an employee that is injured on the job. Almost every US state requires employers to have workers’ compensation coverage. That’s probably because injuries such as sprains, strains, and lacerations are so common. According to the National Safety Council, every 7 seconds an employee is hurt at work. Buying Workers’ Compensation will protect your business and your team members while keeping you compliant with state regulations.

You launch a website

Businesses that store highly sensitive data about clients (or employees) are responsible for keeping the information protected. However, sometimes data breaches happen despite a business’s best efforts. Buying Cyber Liability Insurance will help your business pay for damages from data losses, extortion, and restoration of the compromised website or data system. Plus, a Data Breach or Cyber Liability can cover a portion of legal fees or regulatory fines your business might incur because of the hacking.

You commute for work  

Business vehicles that carry equipment, products, or employees need Commercial Auto Insurance.. A Commercial Auto plan will help pay for damages and liabilities associated with an accident. If you expect employees to use their own cars while conducting company business then you’ll want to have non-owned auto liability.

Insurance Broker in Columbia, South Carolina

TAiG is a South Carolina insurance broker developing customized, state-of-the-art insurance programs for Columbia, Lexington, and Chapin area business owners. The experienced agents of TAiG use their years of insurance knowledge to help new small business owners develop safeguards for their potential risks and losses.