Small business insurance is a necessity to protect your small business assets. The average consumer or property damage liability claim is usually around $30,000. That is why a small business owner usually has multiple policies (typically around 3). This single policy often covers business auto and property liability, business liability insurance, and small business casualty insurance. All of those insurance policies can then be combined into a BOP, which can then assist you to customize it to fit any gaps that your original BOP does not cover.
One thing to remember about small business insurance is that you need it to pay claims quickly and efficiently. If your company makes mistakes, those mistakes will be paid by the insurance. If a customer makes a claim, the insurance needs to cover it. The first thing you want to do is understand the claims process and how to make sure you follow the rules, procedures and guidelines set forth by your company's insurance policy. Then you need to understand what happens when you actually file a claim, and what you should do after it has been filed.
There are two main areas small business insurance helps protect: property and liability. Property coverage helps to protect against damage to or theft of your company's actual property. Liability coverage helps to protect the assets of your small businesses. While both are important, there are some differences between the two in some situations.
Small business insurance can help protect against property damage in a variety of ways. General liability insurance covers damages for injuries, property damages, and advertising claims. Those types of claims typically cover the most common forms of harm that occur on a property.
Generally, the amount of property coverage you need will be determined by the type of operations of your small business creates. General liability insurance coverage can range from $1 million to more than a billion dollars. That's quite a difference! Liability coverage helps protect small businesses from lawsuits, but you must know what type of lawsuits your policy covers and you must know what your policy limits are. You must also know what you can expect your insurance company to do, and what its choices are if you do lose a lawsuit.
Some of the most popular types of small business insurance are liability, property, and business income insurance. Each one covers different types of risks, and each one has its own rules and regulations. Knowing which option fits your particular situation best is very important. It's important to understand what your options are so that you can make an informed decision about . . . . . . how to protect yourself and your business.