Unexpected business costs, emergencies, and legal liabilities are bound to happen over the length of a business’s lifetime. One major loss can be enough to cause small businesses to go out of business for good. Most private entrepreneurs simply just don’t have the income at first to handle a big unexpected business loss. This is why having small business insurance is a must, not an option, for every small business owner. Businesses without the proper amount of coverage also tend not to stay in business long either. There are many levels of small business coverage that are specific to certain industries.
Types of small business insurance:
General liability Insurance pays for a business’s legal defense and any damages that are incurred during litigation. This also covers any customer injuries.
Property Insurance covers buildings, equipment, and many inventory damage and loss situations, plus any inventory losses that are due solely to theft.
Commercial Auto Insurance is one of the most important small business insurances to have full coverage on. Damages and liabilities in an accident can quickly skyrocket.
Worker’s Compensation Insurance is, of course, required by law that employers provide for their employee’s Worker’s Compensation Coverage while on-the-job. The New York State Insurance Department (NYSID) authorizes over 200 different private insurance carriers from which employers can choose Workman’s Comp. insurance providers from.
Business insurance is an ongoing process of assess, shop, find, and reassess. Here are five easy-to-follow steps for finding the right small business insurance.
#1 – Assess Your Business Risks: Before even starting to shop around for small business insurance, make a thorough and extensive evaluation of your businesses threat level. The insurance company that you finally choose for your business is going to want to immediately know these facts anyway in order to make their own evaluation about your insurability within their company.
#2 – Shop Around Before Deciding: Small business insurance is not the type of thing that you just want to purchase right-off-the-bat from just anybody – too much depends on it. Coverage costs, premiums, and deductibles widely vary between insurance providers.
#3 – Find a Reputable Agent: Make sure to check out an insurance company’s or agent’s credentials first, and also check-up on any references you have on them before totally committing to a legally binding policy. Ask your business peers who they go through for insurance and how happy they are with their insurer. Also, check-up on insurance provider’s records through consumer advocate agencies, like the NYC Better Business Bureau and your local Chamber of Commerce.
#4 – Don’t Forget Employment Insurance: States have their own separate workman’s compensation programs, policies, and so on, over legally required Workman’s Compensation Insurance. Luckily, in New York City, business owners who need to cover their employees can do so through private insurance carriers in order to find the best competitive rates available. When moving a business to New York City, it’s always best to inquire ahead-of-time about New York State’s Workman’s Compensation laws.
#5 – Reassess Your Coverage Yearly: The bigger a small business gets, the more coverage that business is going to need along the way. Reassess your coverage every year. Make sure to add any upgrades to your policy that may need to be included in your insurance. Also, include any increased risks that need to be covered as well. IE: New equipment? – Expansions? If you plan on staying with your current insurer, talk to your policy broker and make sure that you’re sufficiently covered. If you plan on switching, ask for a free evaluation of your business insurance needs in order to better compare the two insurance companies’ offers and make a better-informed choice.
Insurance agencies are always going to ask – “What’s the risk factors involved.” As every owner knows, small business is also all about risk. If an owner doesn’t keep up the proper amount of insurance coverage on their Small business, they’re seriously putting their hard-earned livelihoods at risk. Higher business risk equals higher insurance premiums. Risk factors are influenced by the type of business that’s involved, its location, and both the fire and security protections that are emplaced, plus, what coverage is included in the policy.
One way to reduce insurance deductibles is by considering a Business Owners Policy (BOP), where a small business can purchase a coverage package from a private insurance provider. BOP s generally consist of property damage coverage, liability insurance in case of a business involved patron injury (Not workers), and also business interruption insurance (Disaster coverage). These easy-to-remember tips that we covered above will help to keep your business covered all year-round, 24/7; letting you truly focus all-of-your attentions on the successful daily running’s of your NYC small business.
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