As almost everyone operating a small business knows (or will soon discover,) small enterprises have many unique needs and classifications that require special consideration–with many seeming almost beyond affordability. Today, buying business insurance is nothing as simple as what your parents (or their parents) might have been responsible for, so it’s more important than ever to know what, when, where and how much. A small business goes beyond being just a job, and with so much personal investment required to run a successful small business, the small business owner needs to make sure the business is fully protected from all potential risks and unexpected possibilities that exist.
Small Business Insurance Varies
Insurance needs for every business is no “one size fits all” product, and often not the same even for two businesses that appear to be engaged in the same type of operation. With different risks, getting the right insurance is critical in both keeping the business overhead down as well as making sure employees, patrons and every process of business conduction are fully protected. Most consumers are unaware of how insurance companies don’t all offer the same variety of options catering to different industries and sizes. Every day, plans are being sold to small businesses that are really lacking in the right coverage tailored around those business’ specific needs. This is why it is essential to find insurance that meets the diverse needs of today’s small businesses by aptly addressing the potential risks inherent in each one. The good news is that such detailed insurance customization should not cost more, and Benecaid’s groundbreaking solution choices are designed to dynamically save small businesses on employee health plans. Customizable insurance should fundamentally cost less without compromising coverage, ultimately bringing adequate employee health benefits back into prominence for all types of small businesses.
Types of Insurance Needed by Small Businesses
While embracing the sizeable volume of insurance needs just to set up shop, it’s easy for anyone considering becoming the owner of a small business to turn and run. This is where working with a professional broker or agent can provide you with bite-sized information that will help you to weed through what your business will and won’t need. Do not look at the following list and immediately choke, as each small business will need some, but not all of those listed here:
Insurance for Owners, Investors and Critical Employees
The loss or impairment of anyone at this level could ruin a business. Potential risks can be covered by the following types of insurance:
• Life (and Dependent Life) Insurance: (Can range from $0.10 to $1.00 per $1,000 of coverage; Dependent Life Insurance can range from $1.00 to $4.00 per employee with dependents.) Covers the financial loss of a key player’s untimely demise. Can be offered to employees as part of an employee benefits package.
• Accidental Death and Dismemberment Insurance (from $0.03 to $0.25 per $1,000.
• Disability Insurance: (Between $0.20 and $1.00 per every $10 of weekly pay for short term–to between $0.20 and $3.00 per every $100 earned monthly.) Guarantees sustained operation in the event that someone cannot work for a specified time period, due to injury or illness.
• Partnership Insurance (also Buy-Sell Insurance): (Depends on the type of business, the type of insurance and too many other variables to provide one figure.) With this insurance, a surviving partner can purchase a deceased partner’s shares and keep the business running.
• Critical Illness Insurance: (can range from $0.10 to $4.00 per $1,000 of coverage) provides the insured who is diagnosed with a critical illness with a lump sum benefit.
Business Property and Earnings Insurance
Protects your assets and earnings in the event of any occurrence that could render your business unable to perform. Includes repair or replacement of property and buildings. Contents Insurance covers equipment and inventory. Some companies need Business Interruption Insurance to cover temporary loss of operations. Required for all vehicles used by your business–even when they might be your personal ones.
Liability Insurance: This is critical insurance to have in an era where lawsuits filed by consumers are so prevalent. An average annual cost for this coverage begins at around $50 per month among the majority of small business owners. On the low end, annual premiums start around $250, with higher payments moving up past $3,000 annually. There are General Liability, Product Liability and Professional Liability insurance options to consider, each with specific industry-related pricing. Other insurance coverage might be needed for Accounts Receivable, as well.
Health Insurance: The options are numerous and can vary for an employee earning $50,000 a year from being as little as $10,000 per worker and move on considerably upward, depending on a myriad of options and division of financial responsibilities between employer and employee.