As a new business owner, understanding your potential business insurance needs can be unclear and stressful. There are two big questions that often circulate in new business owners’ minds: 1) What kind of insurance do I need? and 2) Where do I start looking? Let’s talk through these questions to help you better prepare for obtaining insurance that’s right for your business.
What kind of insurance do I need?
There are dozens of insurance policies that are available to small businesses but let’s talk about the six most common:
- General Liability Insurance helps protect your business against bodily injury or property damage claims. If you own a product-based business, you may want to consider adding Product Liability Insurance, which protects against bodily injury and property damage claims that specifically arise from use of your product.*
- Business Income Coverage, also known as Business Interruption Insurance, can help repay income you’ve lost in the event of unexpected business closure.*
- Commercial Property Insurance protects your business property in the case of damage that requires repair.*
- Worker’s Compensation Insurance is required in the state of Nevada as soon as you hire a W2 employee. This policy pays benefits to your employees in the case they should be injured or fall ill on the job.
- Commercial Auto Insurance covers costs related to car accidents that happen when you or your employees are on the clock.
- Professional Liability Insurance, also known as Errors and Omissions Insurance, protects you in the case you should make a mistake in providing your professional services. This includes claims of negligence, misrepresentation, or inaccurate advice. Physical therapists, engineers, attorneys, consultants, and other professionals should look into Professional Liability Insurance.
*Many business insurers provide what’s called a Business Owner’s Policy (BOP), which combines General Liability Insurance, Business Income Coverage and Commercial Property Insurance into a single policy.
Now that you have an idea of the kinds of insurance your business might need, let’s move on to question #2:
Where do I start looking for business insurance?
- Ask your personal insurer – Most personal insurance providers also offer commercial solutions. If you’re happy with your personal insurer, ask what kind of commercial policies they would recommend for your business.
- Ask your new business neighbors – Moving into a brick-and-mortar space? Consider asking your new business neighbors if they have recommendations.
- Ask other small business owners – Have any small business owner friends? Ask them for recommendations. Also, consider asking around online in small business owner communities, such as local Facebook groups.
Tips for obtaining business insurance
- When comparing quotes, first compare policies then compare pricing
- Read policies thoroughly
- Research ratings and reviews of potential providers
- Work with a Nevada SBDC advisor as you review policies
Understanding your new business’ insurance requirements can be overwhelming. Let the Nevada Small Business Development Center help at no-cost as you learn more about your small business needs!
Kayla Banda, Business Development Advisor for the Nevada SBDC, helps aspiring and current small business owners start and grow their businesses. www.nevadasbdc.org
To be paired with a Nevada SBDC advisor that fits your needs, fill out the New Client Assessment today at nsbdc.ecenterdirect.com/signup.