You might think you know everything there is to know about the best business insurance companies. After all, you’ve been paying premiums for years and had to make a claim or two. But there’s more to these companies than meets the eye. So here are ten facts about small business insurance companies that might surprise you.
Ten Facts About Small Business Insurance Companies You Need to Know
- Insurance premiums have been on the rise for small businesses in recent years. They’ve increased by an average of 5% per year for the past three years. This is due to various factors, including an increase in natural disasters and an uptick in the number of lawsuits filed against businesses.
- Many small business owners are under the impression that their business is too small to be sued. However, this is not the case. Any business can be sued, no matter how big or small. This is one of the main reasons why insurance is so important.
- Many small business owners also don’t realize that they can be sued for something that happens on their personal property. For example, you could be liable if a party at your house and one of your guests gets injured.
- If you’re considering starting a small business, you should know that one of the first things you’ll need to do is get insurance. In most cases, you’ll need property and liability insurance before you can even open your doors for business.
- Several types of small business insurance policies are available, so it’s essential to do your research before purchasing one. The most common policies include property, liability, workers’ compensation, and product liability insurance.
- Small businesses often purchase workers’ compensation insurance if they have employees working for them—even if those employees are family members or friends. Workers’ compensation insurance covers medical expenses and lost wages for employees who are injured while on the job.
- Many believe that their homeowner’s or renter’s insurance will cover their small business in case of a disaster such as a fire or theft. However, this is usually not the case—businesses need to purchase separate policies to be covered appropriately.” vandalism damage.
- Even if you have insurance coverage, there’s no guarantee that your claim will be paid out.” In some cases, claims are denied because the damage was caused by something not covered by the policy (such as flooding or earthquake damage) or because the business owner failed to take proper precautions (such as not securing their inventory).
- Shopping around and comparing rates from different insurance companies before purchasing a policy is essential. Rates vary significantly from company to company, so it’s worth finding the best deal.
- Finally, it’s important to remember that even if your claim is paid out, it’s still possible that your rates will go up at renewal time.” In other words, just because you made a claim doesn’t mean your rates won’t increase when it comes time to renew your policy.”
As you can see, there’s much more to small business insurance companies than meets the eye. From shopping around for the best rates to the possibility of your rates increasing after a claim, it’s essential to be aware of these companies’ ins and outs. By doing so, you can be sure that you’re getting the best possible coverage for your business.