Business Insurance: Why Your Small Business Needs It

Written By Alla Levin
December 16, 2019

Business Insurance: Talisman Casualty Insurance Shows Why Your Small Business Needs It

Why do many business owners, including I, not care to secure insurance for their business? Well, you may not be the first to ask this question. A current survey by Manta and Insureon discovered that less than 30% of small business owners have a business owner’s policy.

A business owner’s plan includes general liability insurance and commercial property insurance to protect you from damages. According to Liability Cover, subsequent surveys show that less than 21% have Errors and Omissions or Professional Liability Insurance, 6% have business interruption insurance, 2% have Cyber insurance, and 17% have workers compensation insurance

When you’re starting a small business, there are many other expenses you might have to make to keep your business running, while making sure that your business meets the standards to operate in that particular industry according to the regulatory agency in control.

However, many small business owners feel that after meeting up with the many regulations involved in running their business, there shouldn’t be any need to buy monthly or annual premiums for insurance. A myriad of events has shown that not taking up business insurance could lead to regret on the part of many business owners. The unpredictable climate change and sudden disasters like earthquakes, wildfires, and floods are posing a significant risk to pieces of equipment and business’ properties.

Moreover, no matter your business location, no place is exempted from the threat of burglary. Have you at any time asked yourself questions like, do I have the means to replace stolen computers or expensive machinery in the event of a theft?  What would happen if my business is charged with a lawsuit? 

Considering some business fundamentals, you should be familiar with may make you see the opportunities you are missing out on for not having insurance for your business. Let’s discuss some of these insurance fundamentals. 

Business Owner’s Policy (BOP)Business Owner’s Policy (BOP)

Business Owner’s policy is the first policy to take. This insurance covers two of the highest risks for entrepreneurs: commercial property and general liability. Commercial property insurance covers loss or damage to your business’ property from happenings like a fire outbreak in your business location or a burglar that gains access to your business location and makes away with some essential equipment.

Business interruption insurance

Business interruption insurance gives you something to fall back on during the period your business might be out of operation due to a recent disaster that occurred. This particular insurance package replaces the income you lost during the time you couldn’t operate your business.

For instance, if the recent Wildfires damage a company located in southern California, business interruption insurance could assist the business either financially or otherwise during the period the rebuilding is taking place.

Errors and omissionstypes of insurance

Professional service businesses mostly use this type of insurance. It protects your company against lawsuits caused by business mistakes. For example, assuming you’re an accountant while calculating one of your client’s tax returns, you make an error that causes your client to underpaid taxes, thus resulting in a considerable fine for IRS.

Error and Omissions insurance would assist in covering your costs should that client sue your business for making such an error. However, you can’t predict when or what could result in a lawsuit for your company.

Therefore, even if you haven’t committed an error, if your business faces a lawsuit, you’ll have to defend yourself, meaning that you’ll have to deal with the court and attorney costs. Moreover, some clients who want to go into business with you might require that you have the Error and Omission insurance before they sign a contract with you.

Cyber insuranceCyber insurance

Findings have shown that the rate of cybercrime is on the rise. No business, even the smallest one, is immune to Cyberattack. The big companies with all their big information technology teams are victims of this attack not to talk of small companies that might not have the financial strength to power a team that will protect their cyberspace.

Do you know your business can encounter a significant loss from a cyber breach? According to a study by Kaspersky, the average cost of a small business cyber breach could be above $86,000. Cyber insurance can protect your business in case of a cyber-attack or data breach. With this insurance, you have cover against lawsuits from customers, vendors, or more.

Other types of insurance available for businesses include Key man insurance, Workers compensation insurance, and Commercial vehicle insurance. To know the coverage that fits your business, you’ll need to talk to an insurance agent.

For more information on your options, reach out to an independent insurance agent who represents many different insurance companies. Independent insurance agents can help you compare coverage, costs, and policies across various insurance providers.  

Who is Talisman Casualty insurance?

Well, you may have heard the name before. However, if this is your first time coming across the insurance company, they provide several options for small business insurance. I have seen loads of good comments about them before I decided to solicit their service; they are very professional and good at what they do.

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