How To Choose the Right Business Insurance for Your Business

Choosing the Right Business Insurance

There’s a lot in our lives that we love so much so,  we feel the need to protect. But how do we navigate what kind of business insurance our life’s work may need? 

Car insurance is one thing, home insurance is another- but…

How do I choose insurance for my business ? 

Does the coverage meet the business insurance requirements in my state

Does my business even need insurance to begin with?

Who would I call to answer these questions and protect my business?

These questions are coming up more and more as we are seeing more people pursuing putting their passions in action. 

Small Business Statistics:

Since 2017, the number of small businesses registered in the U.S. expanded from 29.6 million to 32.5 million- that’s nearly 10%! Now, that may not sound like a lot until you realize that, according to the U.S. Small Business Administration Office of Advocacy, small business make up nearly 99.9% of U.S. businesses. Those are the business that have less than 500 employees- that includes your favorite restaurants, craftsmen and women, performers, florists, and so many of the business that make up our cities.

In just a few sentences, and a few numbers, you’ve already thought of a local artist, contractor, or that super quirky, unique store that so genuinely stands as a well known member of the local economy. Did you picture your business and yourself in that list as well?

The top 5 states with the most small businesses are California, Texas, Florida, New York, and Illinois. We at Ashland Insurance serve 4 of those top 5 states containing the most small businesses. You could say we are rather familiar with the process and the questions that come up around finding the right business insurance. With the questions being important, you’ll be happy to hear some of those answers that are just as important.

Finding the Right Business Insurance:

According to one of the partners, 

“Not all businesses need to have insurance. Those that don’t are few and far between, but there are times when it could be appropriate. But I haven’t seen many!”

The situations that tend to create or identify the need to transfer risk to an insurance company could include some of the following:

  • – A company that holds any property owned by others.
  • – A company that has a location which others enter to communicate, transact, buy, sell, or view something.
  • – Someone who makes, delivers, or sells something that others ingest or put on their bodies.
  • – Someone who makes, sells, or delivers something that other people use that could create damage or harm.
  • – Someone who goes on others‘ property to improve it, provide a good or service, or alter that property in any way.
  • – Someone that provides professional advice or recommendations.
  • – Someone who creates information that could harm others or could be accused of harming others, whether by bodily injury or financially.

As you might see, there are many reasons to have business insurance, and very few businesses that carry no risk whatsoever.

The theory of insurance is that for a negotiated, agreed price in advance, risk is transferred to a company. If a “claim” occurs then the company assumes the risk that was agreed-upon.

When it comes to the intricacies of business, there are a number of unknown things that could come up unexpectedly- having the right business insurance with the right insurance company can help protect your budding business along the way. 

 

Curious how this will work with your business?

If you are still not sure that your business needs business insurance, or that it may not have the right kind of insurance, give one of our specialists a call. We are proud to be of assistance. With well over 200 insurance companies at our fingertips we can help substantially.