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How to Get Small Business Insurance

Updated 11:11 AM EST, Tue July 31, 2018

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Why Do You Need Small Business Insurance?

Small business insurance can help protect your company from the devastating costs of liability claims and property damage. Liability claims made against small businesses are becoming increasingly common. In the next 10 years, four out of ten small businesses are likely to experience a Property or General Liability claim. In the past five years, 20% of small businesses have been burglarized.1 The average cost of a burglary claim is $8,000. An inch of water can cause more than ten thousand dollars’ worth of damage to a modest 1,000-square-foot space.2 Some liability claims, such as reputation harm, cost an average of $50,000.3
 
The right small business insurance can help cover the costs of claims like these. However, without the proper coverage, you may have to pay these costs with your own business and personal assets. Few businesses, even many large corporations, have enough cash on hand to pay for a large liability, property damage or personal injury claim out of their own operating budgets.
 

What Does a Small Business Insurance Policy Cover?

Small business insurance helps cover many of the hazards that business owners face. These hazards can include costly property damage, income loss, liability claims, workplace injuries and even data breaches. It’s important to have access to an array of coverages to help protect your business as it evolves. You may start out only needing a General Liability policy. Once you add employees, you’ll probably need Workers’ Compensation Coverage. As you continue to grow, you may need a Professional Liability and Umbrella Insurance policy to help cover you for more complex liability claims.
 
General Liability Insurance helps protect your business from the costs of third party property, third party bodily injury and advertising injury claims.
 
Business Income Insurance helps replace lost income when your business is unable to operate due to a covered property loss.
 
Data Breach Coverage helps cover the costs of a data breach for things like identity protection solutions, public relations, legal fees, and more.
 
Commercial Property Insurance helps cover the costs of damage to your business property caused by a covered incident like a fire or hurricane.
 
Professional Liability Insurance helps cover the costs your business may incur if a customer or client makes a claim related to the professional services you provide.
 
Commercial Auto Insurance helps cover the costs if you or your employee is involved in an auto accident while driving for work purposes.
 
Workers’ Compensation helps provide benefits to employees who become injured or ill because of their job. It can also provide benefits to an employee’s beneficiaries if the employee dies from a work-related injury or illness. In most states this coverage is mandatory for businesses that have employees.
 
Business Owner’s Policy (BOP) combines General Liability, Commercial Property Insurance and Business Income Insurance into one convenient policy. This way, you don’t have to manage multiple policies. You can make one payment on your BOP for all three.
 

Why Find an Expert in Insurance for Small Businesses?

An insurance expert can help assess your business’s risks and determine the coverages you need. The insurance expert can also work with you to figure out what level of these coverages you need and what you can afford within your budget.
 
There is a vast array of insurance options for your small business. And there should be. Because there so many things that can go wrong when running a business. From liability claims and property damage, to data breaches and employee injuries, you need to make sure your business is covered from potential threats.
 
The Hartford can connect you with a business insurance expert to discuss the coverages that can help protect your business from the unique risks it faces. Our experts will look at your business’s risk profile and budget and help you tailor a coverage solution to your specific needs.
 

A Step by Step Guide to Obtain Small Business Insurance

Buying small business insurance is a lot easier than you may think. Go online and within one day, it’s possible to research insurance coverages, talk to experts, select coverages, get a quote today and buy. That means it’s fairly quick and easy to assemble the protection you need and have peace of mind, knowing you’ve done what you can to prepare your business for the unexpected.
 
  • Step 1: Gather the required information and documents. You’ll need information such as your business location, gross annual sales, number of employees and total payroll size readily available. You may also need information such as a list of the tools and equipment you use, the types of furniture at your business location, business assets and the age of the building you’re working in.
  • Step 2: Go online, find a broker that specializes in small business insurance or contact the insurance company directly. Do what’s most comfortable for you. Consider starting online and then reaching out to an insurance specialist when you reach a point where you feel a one to one conversation is necessary.
  • Step 3: Review your business with your insurance representative and determine your insurance needs. Ask the specialist what information they will need to help you find the right coverages. From there, you can discuss coverage options and premium rates.
  • Step 4: Evaluate coverage options and choose the right small business policy. Based on your own research and the advice of experts, select the coverage options that will address the risks that your business is prone to and that make sense for your budget.
  • Step 5: Rest easy knowing you have done your best to protect your business by tailoring a small business insurance policy to your company’s unique needs. Small business insurance is an investment. If you plan to stay in business for years to come, you should be ready to handle an accident. Without the right insurance, few businesses survive a significant accident, weather event or liability claim. Buying the right small business insurance can help your business prevail through even the toughest circumstances.
     
 
1 https://newsroom.thehartford.com/releases/the-hartford-reports%3A-more-than-40-percent-of-small-businesses-will-experience-a-claim-in-the-next-10-years
 
2 https://s0.hfdstatic.com/sites/the_hartford/files/flood-insurance-flyer.pdf
 
3 https://www.insurancejournal.com/news/national/2015/04/09/363801.htm