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If you are a solo entrepreneur, commercial insurance may not be at the forefront of your mind. You may think that it is for larger companies with more employees and assets to cover. But commercial insurance isn’t just for large corporations; there are policies available for smaller businesses as well!

Below you will find commercial insurance policies geared towards entrepreneurs and independent agents to help them get started down the right path and their importance. Don’t risk it; go safe!

Why Is Getting Insurance Important?

Once you start your own business, it’s like a whole new life. Being your own boss is a dream you’ve worked hard to build. Operating your business without proper insurance coverage is a highly preventable way that the value of your hard work can vanish instantly.

Being in contact with an independent insurance agent will save you time and give you a better understanding of the topic!

Here are 7 reasons why it’s important to get proper insurance for your business:

  • Protects against lawsuits.
  • Builds credibility and trust with new clients.
  • Offers liability coverage for your business.
  • Protects against covered losses
  • Provides coverage in case of theft or damage to property.
  • Protects the company from claims by clients and/or visitors to your location.
  • Covers the employees and by extension the business itself, for a potential workplace injury.

10 Kinds Of Insurance You Might Need

  • Commercial General Liability is an essential part of any business insurance program. General Liability Insurance is required by most contracts, construction, technology, Government, etc; with limits of at least $1,000,000 per occurrence/$2,000,000 general aggregate.

A Commercial General Liability insurance policy protects your company from financial harm if you are found liable for property damage or personal and commercial injuries caused by your services, business activities, or staff.

  • Workers Compensation is required by most states. It covers employees if they are injured in the course of their work for the business. Per OSHA standards, employers are always liable for team member injury or sickness due to their work. 

The business can suffer legal repercussions, and these vary based on the state, if a team member is injured on the job and there is no worker’s compensation coverage in place.

For any business with at least 1 owner and at least 1 team member (even if the 1 team member is relative of the 1 owner), worker’s compensation and general liability are the minimum coverages a business owner should have in place before beginning to operate.

  • Short Term and/or Long Term Disability Insurance pays a flat rate per day in case of injury (workplace or otherwise) for a given period of time. This provides a supplemental income which is often necessary because Workers Compensation will cover only the medical expenses.
  • Business Income Insurance pays for overhead expenses that will continue to exist even if you are unable to operate secondary to a covered loss. 

For example, if your business is closed, but you must continue to pay your employees or remit payments for utilities, rent, and other supplies, Business Income will cover these expenses. This can be added to Commercial Property and/or Business Owners Policies for an additional premium.

  • Commercial Property Insurance covers property owned by your business: This can mean the items stored in a rented location (computers, furnishing, stock/inventory.) or the building where your business is located; if you happen to own your location.
  • Commercial Inland Marine Insurance covers non-motorized mobile equipment. In other words, items frequently used and/or stored away from the primary business location, such as your office or workshop. Commercial Inland Marine covers “mobile” items such as Augers, Trailers, Air Compressors, Power Washers, etc. 
  • Commercial Automobile Insurance covers vehicles and trailers over 3500 lbs GVW owned by your business. Additionally, Commercial Auto can provide coverage for “Hired and Non-Owned Automobile Liability,” which is extremely important even if the business does not own any vehicles. 

Commercial Auto is a standalone policy type and functions similarly to the Personal Auto policies you may be familiar with. Like Commercial General Liability, the minimum limit required by most contracts today is $1,000,000 Combined Single Limit.

  • Management Liability, also referred to as Directors & Officers Liability (D&O) covers the organization in cases of lawsuits by employees or company officers.
  • Professional Liability, also referred to as Errors & Omissions Liability (E&O) covers the business in case of a mistake or oversight that caused a client to suffer a loss. Because E&O is excluded by General Liability, this is particularly important for those with specific professional exposure including designers (landscape, architectural, web), editors, and/or financial professionals.
  • Business Owners Package Policies You’ve seen these referred to several times above. These are customize-able policies that most frequently cover Commercial General Liability and Commercial Property. These can be customized, depending on your business type and insurance carrier, to include Commercial Auto, Commercial Inland Marine, Professional Liability, and/or Management Liability. These are beneficial because of the ease of having all of these items in one policy but also because the pricing is much more competitive than that of standalone policies that provide the same coverages.

Insurance is there for when something goes wrong, whether that’s a natural disaster or personal injury. However, one thing entrepreneurs are often more concerned about is how much money they’re spending on monthly premiums and deductibles versus what they may need if their business fails in some way.

Protecting your business with insurance isn’t a synonym for expensive; by being a solo entrepreneur, you’re still able to get a minimal policy that adjusts your budget and situation. We highly recommend contacting an independent insurance agent to properly assist you.

Paradiso Insurance: Where Your Agent And Your Policies Work For You

Paradiso Insurance is a community-based agency in Connecticut. We are committed to helping you achieve the true American Dream. Our agency is proud to provide Commercial Insurance such as General Liability, Workers Compensation, and Business Auto. 

We are also thrilled to assist with protecting your personal assets with Personal Auto Insurance and Homeowners or Renters Insurance.

Knowing the industry is what we do best, we know we are your safest choice for taking care of your business. Talk with any of our agents; our team will perfectly guide you through the whole process. 

By working with us, you are our boss. We make sure to get you the right insurance for your business and yourself, don’t lose time!