The Small Business Administration defines a small business as one that employs fewer than 500 people. By this definition, there are more than 27 million small businesses currently operating in the United States. These can range from incorporated, self-employed individuals to trucking companies, repairs shops and construction firms. If you own a small business, it’s a good to consider acquiring the proper insurance to protect your business venture.
If you are one of the millions of entrepreneurial Americans who have started their own businesses, you can turn to Horizon Insurance Services for guidance when shopping for small business insurance. Our agents can work with several different insurance companies to provide you with several policies and premium rates to compare. Contact Horizon Insurance to start comparing small business insurance quotes today.
U.S. Small Business Statistics
- There are currently more than 27 million small businesses in the U.S.
- More than 70% of these businesses are owned and operated by a single person
- 77 million people, or 57% of this country’s workforce, are employed by small businesses
- Approximately 70% of all small businesses remain in operation 2 years after inception
- Approximately 50% of all small businesses remain in operation 5 years after inception
- 54% of small businesses are home-based
What Types of Insurance Do Business Owners Need?
If your company does have employees, you may need the following insurance for small businesses:
- Workers compensation insurance: This coverage can be purchased either through your State’s worker’s compensation insurance program and/or through a licensed insurance agent. Refer to the guidelines set by your State or speak with a Horizon Insurance agent for more information.
Regardless of whether or not you have employees, you may want to consider the optional coverage provided by a business insurance policy.
What Is Business Insurance?
Business insurance is an optional insurance plan that provides you with the coverage necessary to keep your business operational, especially in the aftermath of a catastrophe or a lawsuit. Catastrophes can include fires, major weather events, and accidents with extreme losses. Lawsuits can also devastate your business. These insurance plans can be customized to meet the inherent risks faced by your particular business.
Nearly half of all businesses that are forced to temporarily stop operations because of a natural disaster fail within 5 years. Of those that are unable to resume operations within 10 days, nearly 80 percent close within one month. A solid business insurance policy can prevent this from happening by allowing your small business to remain profitable, even in the face of disaster.
Business Insurance Protects Against Property Loss and Damage:
There are many different kinds of small businesses, all with varying degrees of property coverage needs. Here are some things to consider:
- If you own the building in which your business is located, you will want to make sure that you purchase enough insurance to cover the structure of the building as well as the contents. This coverage will provide the compensation necessary to repair or replace lost, damaged or stolen materials and equipment. If you lease the building, you will want to cover at least your contents and a General Liability policy to cover your business.
- These policies almost always exclude damages caused by floods, so you will want to consider purchasing a flood insurance policy as well.
Business Insurance Protects Against Liability:
Business liability insurance is one of the most important components of your commercial policy. Different industries have different liability risks, and for this reason, business insurance policies can be customized. You need only purchase the type or types of liability coverage you require. Your business liability insurance options can include:
- General liability: This covers most liability claims that may be brought against you. It protects against payments for bodily injury, property damage, libel and slander. It will also cover court costs and legal fees associated with covered events.
- Product liability: This is important for companies that manufacture, distribute or sell products. If a product defect results in illness or injury, your company may be sued. This will provide coverage for this type of lawsuit.
Your business liability insurance rates will depend on how much coverage you purchase and the type of business you operate.
Business Insurance Offers Other Coverage Options:
Business insurance policies can be customized to fit your business plan. Some other coverage options included but not limited to:
- Loss of income insurance: If your business is forced to temporarily cease operations because of a covered event, this coverage can provide you with continued income so that you can pay employees and cover your monthly bills and expenses. This coverage is usually limited to one year.
- Fidelity insurance: This coverage will shield you from losses resulting from the illegal actions of an employee, such as theft or embezzlement.
- Commercial vehicle insurance: If you drive a car, taxi, truck, delivery van or other vehicle for your small business, you will typically need a commercial vehicle policy to cover your risks. If your employees drive while on the job, you will also need this coverage.
Find the Right Insurance Policy for Your Small Business:
By working with a professional at Horizon Insurance Services, we can help you compare options and rates from multiple companies to give you the most comprehensive program at the lowest cost.