Small Business Insurance Guide: Make an Informed Decision

Did you know that over half of small business owners aren’t sure what kind of insurance their business needs? If you’re in that boat, you might be wondering how you’re supposed to choose the right coverage if you don’t understand how it benefits your business. The good news is that the insurance process doesn’t have to be complicated or opaque. 

With the help of a trusted insurance advisor, the process of choosing a policy can be streamlined and easy to understand.  To help you get started, we’ve put together this small business insurance guide with actionable tips to help you make an informed insurance decision.

Consider Business Insurance Options That Go Beyond the Minimum 

As a small business owner, you might see your insurance needs differently than an expert would.

So, how can you avoid being underinsured and without adequate protection for your business?

Consider that you need more comprehensive coverage than you had initially imagined. While it can be challenging to picture anyone taking you to court, small businesses get hit with a disproportionate share of lawsuits—and the lower the business's revenue, the more likely it is to be self-insured or have very low policy limits. 

Knowing that legal action is a possibility can help you make smarter decisions about protecting your business with the right coverage. Insurance is an investment in your business's future, allowing you to accumulate and protect wealth as you grow without worrying about risk exposure.

Ready to get your free quote? Discover what types of business insurance you need with CoverHound’s Insurance Guru. 

Evaluate Your Business Risk

Understanding your business's risk is critical to making an informed decision about the coverage you need—whether a single policy or a bundle—to feel secure moving forward.

Take Inventory of Your Business Liability

An easy way to understand what policies you may need is to look at your business's processes and activities—the ones that immediately jump out and the not-so-obvious ones.

Here’s a short list of questions to get you thinking about your business assets and activities and where they intersect with third parties that might try to hold you liable for any harm.

• Do you have a physical location? If so, do third parties visit you there? If not, where do you work from?
• Do you have employees? Where do they work? (e.g., remote/in-office/hybrid)
• Do you have company cars?
• Do you drive to do business activities – to work, to get work supplies, etc.?
• Do you use technology in your business? Does it store customer data?
• What assets does your business own? 
• Do you work in other people’s homes/on their property?
• Do people pay you for your expertise(e.g., advice, marketing, public relations?)

Hopefully, these small business insurance guide questions got you thinking about risk exposure in your business. Insurance can protect you from costs that arise when others are injured at your place of work or in association with your work activities and protect your place of work or company vehicles.

Talk to a Licensed Representative

As a consumer and a business owner, you want to be informed when buying an insurance policy. However, the responsibility of understanding the best coverage for your business doesn’t have to lie solely with you. A trusted licensed representative can help you understand your business’s risks and what kind of coverage will keep you protected.

Consult a Trusted Small Business Insurance Advisor 

While you may start finding an insurance policy with a CPA or financial advisor, all roads lead back to licensed insurance representatives like those at CoverHound. A licensed insurance representative is the most qualified to be your partner and trusted resource as you navigate different coverage options.

An essential part of making an informed insurance decision for your small business is comparing quotes from several carriers. This includes what the premium is, what’s included and expressly excluded, if your policies are bundled, and if payment plans are available.

Comparing quotes is important. You want to ensure you’re getting the best deal for the most comprehensive coverage and that you’re comfortable with everything your policies do and don’t cover. Working with a trusted advisor like those at CoverHound can help simplify picking an insurance policy.

Find Comprehensive Coverage For Your Business with CoverHound

Small business owners are frequently underinsured and may be unaware of their risk exposure.

Keep an open mind about your coverage needs as you work with a trusted advisor to evaluate your business risks. Remember that insurance is more than just another business expense; it’s an investment in the future of your business and the wealth you’re building. 

CoverHound is a user-friendly online insurance platform that gives small business owners access to 50+ insurance carriers. With insurance experts available to answer your questions and help you navigate the process of choosing a policy, CoverHound provides simple, tailored insurance solutions for any business. Secure your business's future in just 5 minutes—get your free, no-hassle insurance quote today.