Preparing for the Unexpected — Challenges Small Business Owners May Face

When it comes to business, surprises aren’t always the good kind. One single unexpected event can throw off even the best, most successful business owners.

Preparing for the unexpected is more than just a smart move. It’s essential to help a business survive when things don’t go as planned. That’s where small business insurance comes in. As a leading small business insurance provider, we believe one of the best ways to stay prepared is to acknowledge those “what if” moments. The ones that could happen but you hope never do. To do that, let’s look at a few scenarios small business owners might face, and how being prepared can make all the difference.

A Not so Picture-Perfect Event

Sarah is a professional videographer. She primarily works on-location for her filming projects and relies heavily on specialized equipment, including high-end cameras, drones, lighting rigs, and editing tools. Altogether, her gear is worth tens of thousands of dollars.

One weekend, Sarah is hired to shoot a destination wedding. She stores her gear in her hotel room. That night, a water pipe bursts, damaging all of Sarah’s equipment, making it unusable for the scheduled shoot.

What if Sarah had Inland Marine Insurance?

Luckily Sarah had the foresight to know that accidents happen, and when expensive equipment is involved, it’s better to be safe than sorry. That’s why she purchased tools and equipment insurance, or inland marine insurance, when starting her small business. Unlike a standard business property insurance policy, which only covers items located at a specific address, inland marine insurance is designed to protect valuable equipment while it’s in transit or at off-site locations. For Sarah, this policy covered the costs to replace her water-damaged gear, allowing her to financially recover from the loss and continue capturing her best work.

A Bistro Goes up in Flames

Bobby runs a small Italian restaurant famous for its wood-fried pizzas. He employs 10 staff members and has made a large investment in the authentic wood stove, kitchen equipment, and decor. 

During a dinner rush, one of Bobby’s workers hits a piece of wood in the stove while taking out a pizza. The wood falls to the floor and a fire spreads quickly. It causes massive damage with smoke infiltrating the dining room as well as the business next door. Bobby is forced to shut down the bistro for at least three months while everything is replaced and repaired.

What if Bobby had a business owner’s policy?

Fortunately, Bobby had excellent taste in insurance for his small business and had purchased a business owner’s policy (BOP) prior to opening. Even though his bistro suffered major damage, his BOP includes property coverage, which pays for repairs and replacement of damaged kitchen equipment, furniture and decor as well as the cost of restoring the restaurant. It also covers any lost income during the shut down period, helping to pay for ongoing expenses such as rent, utilities, and employee wages. A BOP also includes general liability coverage, so claims from the neighboring business affected by the smoke are covered.

A Slip That Turns Serious

Steve owns a lawn care business, providing spring cleanup, mowing, hedge trimming, aerating and reseeding, weed control and more. He has been very fortunate that his business has grown a lot in the last year, so to keep up with demand, he hired three employees to help him with his customer’s lawns.

One day, Marcus, an experienced crew member, is mowing a customer’s backyard. While mowing on an uneven slope, he loses his footing, falls and breaks his ankle. Marcus has to go to the hospital where he gets a cast, but he’ll need weeks of rehabilitation, and will be out of work for at least eight weeks.

What if Steve had workers’ compensation?

Steve knew that owning a lawncare business came with extra risks. And those risks became even greater once he hired employees. Luckily, before hiring his crew, he purchased a workers’ compensation policy which helped cover Marcus’ emergency room visit, follow-up care, and a portion of his lost income while he was out of work. 

A Chemical Reaction Gone Wrong

Anita owns a salon in her town and offers hair coloring, skin treatments, and makeup services. She prides herself on using only high-quality, safety-tested professional products from top brands.

One of her regular clients, Anne, books her for a coloring service and has asked for platinum blonde hair, an intensive process that requires bleach. Anita performs a strand test, sees no issues and proceeds with the full application, as she has done on hundreds of clients before without issue.

Later that night, Anne develops severe itching, redness, and blistering on her scalp. She heads to urgent care where she is diagnosed with a chemical burn and a delayed allergic reaction. Anne claims she wasn’t warned about the risks and files a lawsuit seeking damages for medical expenses and emotional stress.

What if Anita had liability insurance?

Luckily, Anita understands the risks associated with the beauty business. Clients aren’t always happy with the result, and even safe products can cause bad reactions. That’s why she purchased professional liability insurance even before her salon got its first customer. In this instance, the policy covered the medical and legal costs, even though the lawsuit was based on an unexpected reaction. And, it helped keep her salon open during a stressful and costly legal situation. 

Small Business Insurance is Our Specialty.

We’re in the business of helping small business owners like Jessica, Bobby, Steve, and Anita prepare for life’s unexpected moments by helping them find the insurance they need. We work with leading national insurers who specialize in small businesses and our free online tool is  available, 24/7. Have questions? Our team of licensed agents are just a phone call away to provide helpful answers about the risks associated with small businesses and the right types of insurance to choose. 

Is Your Small Business Ready for the Unexpected?

No matter what business you’re in, we have coverage options that can help you protect what you’ve worked so hard for.