The Small Business Administration defines a small business as a company with 500 or fewer employees. In 2013, there were 28 million small businesses in the United States, employing over 120 million people. This sector has also produced 65 percent of all new jobs since 1995. As a small business owner, you understand the hard work and dedication that it takes to keep your business operating and profitable. The following article will provide you with the tools you need to discover additional resources and information needed within your specific industry, including small business insurance.
When opening a small business, it is important to assess the type of risks your business may have. If you are a restaurant owner, then your risks may include things like a fire, cuts and burns to your employees and maybe even food poisoning issues with customers.
If you are opening a travel agency, then your risks may be less as your employees sit at desks all day and are not subjected to any major sort of injury. On the contrary, a construction contractor probably needs as much coverage as they can for those employees who handle explosives. If you own an amusement park you, need coverage for customers on the rides.
Health and Beauty
The health and beauty industry is a popular and expanding market with a wide variety of opportunities. Promoting health, wellness, and relaxation can be a rewarding career. Currently almost 2.4 million individuals work in salons and personal care alone, and many of them own a small business. Whether you’re an esthetician, Pilates studio owner, or you run a spa, there are a variety of opportunities and risks that you need to consider before opening your business.
Many individuals interested in home improvement choose to go into business for themselves. These highly skilled handymen work as electricians, plumbers, landscapers, and painters. They are intimately involved in helping to improve the quality of your home while working quickly and efficiently. Even though these are generally one-person operations, owning a home improvement business involves certain risks, and you’ll want to ensure that your assets are protected.
Restaurant and Food
Who doesn’t love good food? People in the food industry play an active role in creating interesting and exciting dishes. They provide their cuisine to the public in a variety of ways from concession stands to traditional restaurants and everything in between. Small business owners in the food industry work with other individuals who are their employees, investors, and customers. They usually have expensive equipment for food preparation and service. Having a wide array of assets means investing in different types of insurance to protect your business.
Arts and Entertainment
Owning a small business in the arts and entertainment industry can be fun and exciting. You get to bring joy to your customers every day. With such a wide selection of opportunities, like photography, DJ services, tattoo parlors, and bars, you can work by yourself or with a team of individuals. In addition, you may be able bring your services to your clients, or rent or own a space for your business. One of the major risks of owning a small business in the arts and entertainment is personal injury. You certainly don’t want a customer have an accident, and having the right insurance can protect you. Other insurance options, like property insurance, are described more in depth on the following page.
Children and Pets
Working with children and animals can be a very rewarding career. For example, owning your own daycare is a popular small business option for parents that want to earn an income while staying at home with their children. Even though having a small business in this industry can be quite fun, interacting with other people’s children or pets can pose certain risks. You need to protect your business against lawsuits stemming from injuries, property damage, and other liabilities.
In general, small business owners need to consider various insurance options in order to protect their assets. If you have employees, you may want purchase workers’ compensation, health insurance, and life insurance. If you work takes you on the road, you will need to purchase inland marine insurance. There are a variety of options available and the link below explains each coverage type in depth.
What to Expect Before Purchasing Insurance
Insurance agents will probably want to meet with the owners of the small business and visit their facilities, whether an office building, plant, or storefront. A licensed independent agent will likely want to tour the premises to determine whether the property is listed on a historic registry, built of one-of-a-kind materials, or if it is located adjacent to any high risk exposures, like an abandoned building. He or she may also request to observe any equipment or machinery on site, and will want to determine what constitutes a fixture or improvement on the premises.
Also, an independent insurance agent might want to discuss the difference between building coverage, business personal property, and coverage for the personal property of others with a company owner. And, they may want to specially distinguish whether certain items at a business location are owned by an owner or employees, or are property of a small business itself.
Besides touring a business’s facilities, a seasoned commercial insurance agent may also want to know about a company’s bookkeeping practices, along with its business income figures, and whether an organization or any of its owners or managers has even be named as a defendant in a lawsuit related to the company’s goods or services. They may also inquire about the typical schedules worked by company employees, along with the training they receive, and if an owner employs any workers on a part-time or contract basis. They may ask whether employees operate vehicles in the course of their work, which could necessitate auto insurance coverage, and they might inquire about a small business’s practices when it comes to backing-up and storing electronic data.
A independent insurance agent who knows the important factors to consider in selecting small business insurance will probably discuss the kinds of coverage afforded under policies from a variety of different insurers, along with typical exclusions and limitations found in each. They may describe how things like retaining walls surrounding a business, animals not owned by an insured, crops stored outside of a building, or automobiles for sale might not be covered under a policy, and they will answer small business owners’ questions about selecting sufficient coverage. With commercial insurance through a trusted independent insurance agent, owners of gas stations, pet shops, cafes, and other small businesses know that in case of a claim or loss, their business can remain secure.
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Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.
While the majority of people want an agent involved in their purchase of insurance, many people want to see if they can save money by buying direct from the insurance company. Others want to try a direct quote to make sure the premium they’re now paying through their local agent is fair. If you want a quote for your coverage, click on the competitive quote button on the right side of this page.