Why Insurance is Essential for Small Businesses

Some small business owners assume that, short of a catastrophic event, carrying insurance for their business is unnecessary.  Some small business owners believe they could easily pay out of pocket to square up with a client, customer, or employee if a small mistake or accident occurs.

However, most small businesses would not have the resources or capital available to cover an insurance claim if the need arose.  Small business insurance is essential for business owners to protect their company and livelihood.  There are various types of small business insurance coverages available.  What kind of insurance a business owner selects will depend on the type of business they own and the laws for their specific state.

General Liability Insurance protects a business from claims that it caused bodily injury or property damage to another party.  (As an example, a customer trips and falls over a warped floor in a small business or restaurant.)  Some general liability policies also include Product Liability Insurance, which would be for a business that produces a product sold to the public.  This would protect against claims that the product sold caused injury to another party.

Professional Liability Insurance covers claims related to potential mistakes in professional services provided.  This type of coverage helps with legal costs if your company is sued due to an error made by the owner or an employee of a small business.

If your small business suffers a lapse of operation due to covered property damage (such as from fires, storms, or theft), Business Income Coverage can help replace lost income.

If you own or lease a commercial space, Commercial Property Insurance can help protect the building and equipment you use to operate your business.  For example, if someone broke into your small business and stole tools or computers, commercial property insurance can help cover the replacement costs.  This type of insurance may also go by the name Hazard Insurance.

If you employ others to work for your small business, Workers’ Compensation Insurance protects your employees if they have a work-related illness or injury.  Most policies cover medical treatment costs, and this type of policy is required for businesses by most states.

If you or your employee get into an accident while driving a company-owned vehicle, Commercial Auto Insurance covers potential property damage and bodily injury claims.

If personally identifiable information is lost or stolen, Data Breach Insurance helps a small business respond to a breach of information.  This type of insurance saves resources, time, money, and a business’s reputation.

If your small business employs several individuals, it may be worth looking into Employment Practices Liability Insurance.  This will protect your small business against claims of discrimination, sexual harassment, and wrongful termination.

A Business Owner’s Policy combines general liability, commercial property, and business income insurance and is one of the most popular types of commercial insurance.

At Gill Insurance, we are happy to sit down with you to discuss your small business’s unique and individual needs.  Our agents are familiar with the commercial insurance laws in the state of South Carolina.  We work with multiple commercial insurance companies to find our customers’ best rates and coverages.  

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