Small Business Insurance FAQs

Small business insurance actually includes several types of insurance coverages designed to serve the typical needs of the small business owner. Here are some frequently asked questions (FAQs) about small business insurance covers available:

What type of small business insurance do I need?

To be on the safe side you need to have both general liability and professional liability covers in the insurance policy you purchase. The professional liability part should include errors and omissions insurance cover as well to protect you from any claims in this regard. The property insurance cover should include any tenant improvements also. If the area where your business is located is flood or earthquake prone you should also get these covered.

You will also need a small business health insurance plan if you wish to offer group health insurance to your employees as an incentive. Even though as an employer it is not compulsory for you to provide group health insurance cover the insurance companies are often required to provide such coverage to small businesses. Infact there are many other types of coverages available to suit individual insurance needs of small businesses.

How much will small business insurance cost me?

It will depend on how large your business enterprise is, the number of employees, the risk perceptions about your business, etc. On the average it costs about $3500 per year. Make sure that you are covered in the category of business you are in. Different categories have different risk assessments. Being categorized wrongly may lead to higher insurance costs.

What about commercial vehicle coverage?