Small businesses have different insurance needs than bigger ones. That is just the nature of business, which means that you can’t copy what a big corporation in a similar field to yours did. Each type of enterprise also brings its own insurance requirements, so copying what a similarly-sized business won’t work either. So how do you decide what you need? You go over the following checklist:
What Type Of Business Do You Have?
Does your enterprise make stuff? You will want product liability insurance in case of a damaged product. Are you offering a service? Then you will want professional liability insurance in case you get sued for negligence, errors or malpractice.
While general liability can cover financial loss from many types of legal, medical and natural disasters, you will want something tailored specifically to your industry for the best coverage. For instance, if your business requires you to drive, you may need to include auto insurance in your business insurance package.
How Are You Incorporated?
You might be forming a Limited Liability Corporation, S Corporation or a C Corporation. These types of companies are separate tax and legal entities that protect the individual owner from some types of liability. Most small businesses are Sole Proprietorships or Partnerships, however. They are easy to form and require little paperwork to register. The drawback is that an owner is personally liable for some things that the owner of an LLC isn’t. The sole proprietor or business partner will therefore need different types of insurance.
Do You Have Employees?
The federal government mandates that any company with employees gets disability insurance, unemployment insurance, and workman’s compensation insurance. The state of Florida backs this up with minimum worker’s compensation requirements, which vary by industry.
Where Is Your Business Based?
Florida is well-known for its unruly weather and real estate market. This means that you will have to think about property your business owns. Look into getting commercial property insurance if your business requires you to buy a property, especially if you need a lot of space.
If you are working out of your home, it may be a good idea to add a home-based business insurance rider to your home insurance. That way, small amounts of equipment that you use at home can be protected against liability and damage.
If you would to like to discuss your options for small business insurance please call us at 561-732-9305 our quoting hours are Monday through Friday from 8:30 AM to 5:30 PM. In addition, you can request a quote online. Please remember, We Handle All the Work, While You Save!
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Rob Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953.