Small business insurance also called commercial insurance aids businesses in protecting their resources, assets, profits, and business property. Small business owners may also be given the option to craft a plan by purchasing extra insurance benefits that align with their needs.
What does a small business insurance policy cover?
A business insurance plan can help to safeguard your business against financial hits, break-ins, fires, or natural disasters like hurricanes, floods, or tornadoes. Make sure you read your policy records carefully, so you understand what is included and excluded from your insurance plan.
Every type of coverage included in your plan has limits. This is the highest cost that your insurance company will compensate for an included claim.
Every coverage claim within your policy usually has a limit, and some claims come with deductibles which are yours out of pocket costs dedicated towards claims included in your claim.
Types of small business insurance plans
The most frequent insurance plan for businesses is called a business owners policy. This policy consists of 3 types of coverages. These include business property, general liability, and business interruption coverage.
Business property coverage
Property coverage protects your business physical structure and the equipment inside of it. Business property coverage can protect your business from fires, floods. heavy winds and other natural disasters. This kind of insurance would help the business owner to replace repairing the edifice, machines, furniture, and computers.
It is important to note, your business property insurance plan will be subjected to deductibles and limits. Oftentimes insurance companies will allow you to choose property coverages built around how much it would cost renovate, reconstruct, and restore your property.
If the damages surpass the limit you agreed upon, then you will have to use your personal money to finish or rebuild your business. Due to inadequate policy limits, you can be fined for not buying a suitable insurance policy.
General liability coverage
An entrepreneur’s insurance policy should have general liability coverage or commercial general liability This insurance policy protects the business if a consumer or guest slips and falls and is injured on the company site. This policy can help to pay for the injured individuals’ health-related expenses as well as legal fees if they decide to take you to court over their accident.
This kind of policy also has coverage limits. If the injured party’s medical bills surpass the limit of your plan, then you would have to pay the remaining bills with your own money.
Business interruption coverage
Business owner’s insurance plans also include business interruption coverage or business income coverage. This type of coverage is designed to reimburse lost revenue and additional cost if your business becomes affected by an unexpected situation.
. Case in point, if your business receives a substantial amount of damage from a hurricane that makes your office space untenantable. With business income insurance, you will be able to rent a temporary office space until your building repairs have been completed.
In addition to this, this type of insurance can also reimburse lost revenue from unexpected situations. This type of insurance is also subject to limitations and time intervals
