Small business insurance is crucial for protecting your business's financial stability from unforeseen risks, claims, and lawsuits. While running a business is demanding, prioritizing insurance is a necessary safeguard.
You need insurance because your business is vulnerable to lawsuits, even if you haven't made a mistake. Insurance provides financial protection against the costs associated with these legal challenges:
Injury or Property Damage: If someone is injured on your premises (e.g., slipping in your shop) or if your business operations cause damage to a client's property, you could face a claim.
Defense Costs: Even if a claim against you is baseless, the cost to hire an attorney and defend yourself can be substantial. Insurance covers these legal defense costs, which can otherwise quickly bankrupt a small business.
In some cases, insurance isn't just a smart choice—it's a requirement:
Professional Mandates: Certain professions, particularly those in healthcare or other advisory roles, are legally or ethically required to carry professional liability insurance (often called malpractice insurance) to protect against claims of negligence or mistakes.
Contractual Requirements: Many clients, especially larger organizations, will require you to demonstrate proof of specific business insurance coverage before they agree to work with you.
The specific insurance you need depends on your business's industry, size, and operations. However, most small businesses should consider the following:
General Liability Insurance is often considered a foundational policy for most businesses. It covers claims of:
Bodily Injury to a third party (like a customer or vendor) caused by your business operations or on your business premises.
Property Damage to a third party's property caused by your business.
Personal and Advertising Injury, which includes things like libel, slander, or copyright infringement.
Who Needs It? Virtually every business, but it's especially important if you interact with clients face-to-face, have a physical location (like a store or office), or go onto a client's property.
Professional Liability Insurance (also known as Errors & Omissions or Malpractice Insurance) protects businesses that provide services or advice.
It covers claims alleging that you caused a financial loss for a client due to a mistake, omission, negligence, or failure to deliver a promised service.
Who Needs It? Professionals who offer advice or services, such as consultants, accountants, lawyers, graphic designers, real estate agents, and many healthcare providers.
A Business Owners' Policy (BOP) is a package that combines essential coverages into one convenient and often more affordable policy. It typically includes:
General Liability Insurance
Commercial Property Insurance (covering your physical assets like buildings, equipment, inventory, and tools from risks like fire or theft).
Who Needs It? Small to mid-sized businesses that have business equipment, tools, inventory, or a physical location.
The cost of small business insurance depends on the industry you’re in, the size of your business, the type of insurance, and other factors.
Most small businesses spend $35 a month or less for a general liability policy, but your costs could vary.
You can get a quote with us at Tans agency and we can guide you through the process to find the best quote to protect you and your business.
If you’d like trusted guidance on Errors and Omissions Coverage or want a quick review of your current policy, our team is here to help—just reach out!
Phone: 469.269.6539
Email: sales@tansagency.com
Website: Tansagency.com
Contact Tans Agency for a policy review: 469.269.6539