5 Essential Types of Insurance for Small Business Owners

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Jake Wintczak

email: jakew@primeis.com

Insurance for Small Business Owners

5 Essential Types of Insurance for Small Business Owners

Small business owner insurance should be a key part of every entrepreneur’s business plan. In reality, however, too many businesses bank on luck. Three-quarters of firms in the United States are underinsured by at least 40%. Worse yet, about 40 % of small business owners have no insurance at all, claiming cash constraint.

Operating without small business owner insurance is a terrible idea. As an insurance producer, you will know this from seeing businesses shuttered over fire, theft, accidents, lawsuits, and liability issues. The small business owner market provides an excellent opportunity to write more business while helping entrepreneurs secure their companies against risk.

 The Benefits of Small Business Owner Insurance

You can reach out to small business owners by explaining why insurance is accessible. Small business owner insurance does not have to be too expensive. When contrasted with the cost of losing a business or being liable for a major lawsuit, small business owner insurance premiums are not bad at all.

Procuring small business owner insurance can help your clients mitigate risk. At Prime Insurance Company, we pride ourselves on helping people understand risk. We offer risk management advice so costs are manageable and claims are less likely to arise from preventable situations.

One of your goals should also be to demystify small business owner insurance. Show your prospective clients the gaps between what they have in place and what they need to be secure. Many business owners already know, or at least feel, that they should have more insurance in place. If they are operating without any coverage, you can help them sleep better at night. Others, however, will not be aware that they are underinsured.

Whatever the situation, you can make the most of opportunities to provide coverage by offering to explain various types of small business owner insurance and by providing customized coverage for each client.

Here are our must-have coverages as an excellent place to start. Of course, there are always more policies depending on the client.

General Liability Insurance

This is insurance that protects your clients from any third-party claims from clients, vendors, and the like. If someone is injured on the client’s property, their property is damaged because of the client’s work, or something like slander becomes a legal problem, general liability insurance is a lifeline, providing for damages up to the policy limits. This also applies to home-based businesses.

In an industry where accidents, injury, or damages are more likely to occur, general liability insurance becomes all the more important. This is especially so for a small business where one big claim can shut the whole company down.

 Professional Liability Insurance

Professional liability insurance is key to protecting small business owners and employees from liability that stems from negligence or malpractice. Clients may have heard of it as errors and omissions insurance, as it protects against both.

If the business is riskier than others, such as those that involve physical activity or have a high potential for injury, then professional liability insurance becomes critical. Of course, your clients are not out to hurt anyone, but no matter how careful people are, accidents happen. Professional liability coverage can be key to ensuring a business can keep going without significant financial loss.

Professional liability insurance should be tailored to the industry your client is in and the specific risks to which they are exposed. At Prime Insurance Company, we offer many types of professional liability insurance to meet the unique concerns of various occupations and industries. We may be able to provide liability insurance for clients that other insurers have denied.

 Commercial Property Insurance

There is no telling what could happen on-premise, whether a business is large or small. For a small business, theft, fire, vandalism, or other property damage can be devastating. Many small businesses never recover from accidents. Small business owner insurance in this area should cover business property like equipment and inventory. Many owners do not own their business building, but if they do, the policy should cover the physical location too.

Commercial Auto Insurance

If your clients use company vehicles in any capacity, commercial auto insurance is vital. Whether the vehicle is used to carry employees or the owner, their products, or their equipment and tools, commercial auto insurance provides coverage for damage and collisions.

Similarly, if there is not an actual company fleet in place, but employees drive their own vehicles, then non-owned auto liability insurance can fill the gaps of an employee’s personal insurance. It might seem like a small detail, but securing this coverage can save a lot of money if an accident occurs.

Cyber Liability Insurance

Today’s small businesses are just as involved in technology as multinational companies. Even the most modest business may have access to sensitive data. Therefore, they are responsible for protecting that data from a security breach. Just as accidents happen elsewhere in the business world, data breaches are an unfortunate fact of business that involves sensitive information.

If your clients store confidential or sensitive data, whether on paper, a computer, or a server, cyber liability insurance provides the coverage they need to defend against the loss of that information. Data breach fines and lawsuits can be staggeringly expensive. This coverage should offer peace of mind.

Prime Insurance Company – In Your Corner for Small Business Owner Insurance

Your small business owner clients are sure to benefit from excellent insurance. Fortunately, that is what we offer at Prime Insurance Company. You, too, will benefit from the ability to write more business.

We are pleased to work with you to find the best insurance for your small business owner clients, whatever the sector. To learn more about our insurance products or to get a quote, contact us toll-free at 800-257-5590, or email us at info@primeis.com. You can also stay up to date with us via our profiles on social media. You’ll find us on Facebook, LinkedIn, YouTube, and Instagram.

Rick J. Lindsey
Rick Lindsey

President, CEO and Chairman