THE RISK OF SMALL BUSINESSES AND THE INSURANCE COVERAGE NECESSARY FOR EACH TYPE
By now we’ve covered the “what” and “why” of securing insurance. But before you start searching for the best small business insurance, let’s learn about your options first.
The first thing that you need to know is that there are three main things that every small business owner fears the most:
- Theft
- Force majeure
- And liability (give or take a few other variables, of course).
Frightening as they are, these potential risks can occur during the normal course of your business dealings. However, the good news is that you can mitigate their effects by thinking ahead and securing insurance for your small business.
In the next section, you’ll learn how a good small business insurance coverage can put your mind at ease regarding these three risks, as well as others. Looking at the bigger picture, you may choose from the following plans of attack:
1. Insurance for Property Damage
Natural disasters or force majeure are unforeseen threats that can cause losses within your business. While these may be few and far between, the gravity of the damages that these disasters can spell the end for your business. We’re talking about natural calamities such as fire, flood, earthquake, and the like here.
As you might imagine, the damages that these calamities can cause are staggering. In just a moment, you might lose everything in the fire or water or rubble, as the case may be. At best, the extent of the damage may be remedied with you covering for the losses out of your own pocket. (Of course, if you were to be honest, this is not exactly an ideal situation too)
The best insurance for small business owners should include a policy that covers for the damages in events such as this. After all, the last thing that you want to happen is to cover for the damages yourself and end up filing for bankruptcy.
Carefully mapping out the possibilities may just save your business when the time calls for it. With the right insurance policy, you can have your business up and running again in record time.
2.Insurance for Legal Liability
Without small business liability insurance, you leave your business open to lawsuits and claims made by third parties. Just think about it: one small slip in from a recently mopped floor in your place of business can snowball into a lawsuit that can stretch over months or years.
Plenty of businesses have closed down simply because of injuries that their customers (and even employees) have sustained in their store. Needless to say, medical expenses as well as damages can cause an exorbitant amount of money, an amount that you might not be able to shoulder by yourself.
However, with the right backing and under the influence of small business liability insurance companies, you may just be able to prepare ahead. Settlements, legal fees, and other necessary awards covered by the best general liability insurance for small business might just be your savior.
>> Small business liability insurance cost
Even the cheapest general liability insurance small business can be just what your business needs. Your average small business liability insurance cost will range between $300 and $650 a year. However, in general, the costs will be determined based on the perceived level of risk of your business, as well as the level of coverage the business required. This means to say that a business that deals with heavy machinery will pay a bigger premium compared to a 2-person IT team that requires a cheap home based business insurance.
3. Insurance for Employees
Whether you run a 2-man team or have more than a dozen employees in your payroll, it pays to secure small business health insurance for them (and yourself). Not only will you boost morale within your team, but you can also make sure that your team is healthy, happy, and have access to the right medical aid.
As a small-time business owner, you may be considering the logistics of securing small business medical insurance. Aside from the human aspect of it, ensuring that your employees stay healthy with the aid of a comprehensive health insurance for small business owners should be one of your priorities as a business owner. If not that, then just consider how much time and effort is needed to hire and train multiple heads regularly.
SMALL BUSINESS HEALTH INSURANCE COST
As with most things, you may want to consider paying your premium for a group plan. Small business group health insurance are often shouldered by the employer but a small amount of the premium can be deducted from the employees.
The average small business group health insurance cost in 2019 was approximately $400 per month with a $3,000 deductible, that in comparison to $450 per month if you go for an individual plan, with a $4,500 deductible.
