What is the Best Small Business Insurance?

Accidents happen, even to the best of us. No matter how careful we are, we can’t plan for a spate of bad luck.

We can, however, be prepared when something does go wrong.

Like choosing the right insurance coverage for your business. Your industry, special equipment, the kinds of jobs you take — all the unique aspects of your work — will factor into the coverage you need.

But how do you decide?

If choosing business insurance feels like information overload, we get it: You’re already busy running a small business, and sorting out different coverages may be unfamiliar territory. You might even be tempted to put off buying that first policy (and just hope your luck holds out).

Hang in there. In a few simple steps, we’ll help you prep, compare, and get business insurance – and you can do it all online!

How to Find the Best Small Business Insurance Policy

1. Prepare in advance.

As a small business owner, you know one thing for sure: Your time is valuable – and always in short supply. You can make your insurance-buying experience fast and easy by taking a few minutes now to assess your small business.

Consider all the kinds of work you do, where it’s done, and how big your business is. As you’re pulling together those details, try using the checklist below to make sure you’ve hit all the important points.

Your Work:

• The general industry you’re in
• The types of projects you usually do
• Any seasonal duties
• Any specializations or areas of expertise
• Any plans to expand or change your business in the next year

Size:

• Number of locations
• Annual revenue
• Inventory
• All cars or trucks you use for work

Location:

• Mailing address
• Physical address
• Any storage space you own or rent
• On-site work you do, such as clients’ homes or offices
• Home-based business activities

Equipment:

• Computers
• Office equipment
• Furniture
• Tools
• Machinery
• Display fixtures or racks
• Trailers
• Signs or marquees

Helpers:

• Part-time or seasonal workers
• Full-time employees
• Contractors
• Subcontractors
• Family members who work with you

Having these details at your fingertips helps ensure you get the most accurate quotes and appropriate coverage for your small business. It also will help you feeling more confident and reassured that you have the right policies when the time comes to file a claim.

2. Assess your risk.

Using the list above, go through and think what risks are associated with each item. For example, if you have valuable tools, there's a risk they could be stolen; if you have employees, there's a chance one of them could get sick or injured.

Go through each item and record as many possible risks as you can think of. It's important to consider what risks you may face so that you're prepared to understand what type of business insurance coverage you'll need.

3. Learn about different coverage types.

Now that you know what risks you face in your business, it's time to consider what sort of business insurance policy may fit your needs. To do that, you need to learn about policies that you can consider.

There are three coverage types you may want to begin with: general liability insurance, professional liability insurance, and workers compensation insurance.

Best General Liability Insurance for Small Business

General liability insurance is coverage that protects you in the case of bodily injury, third party accidents, or property damage. If a customer becomes hurt due to the work you do, or their property gets damaged, you could be held responsible for paying for the damage or medical bills.

With this type of coverage, your policy could help to cover those costs, as well as associated legal costs.

Best Professional Liability Insurance for Small Business

Professional liability insurance is coverage that protects you from claims of negligence and is typically useful for professionals whose services involve advising customers. If a customer sues you and claims that they lose money as a result of working with you, then you could be responsible for those claims.

This type of coverage could help to cover the cost of the assumed damages and legal costs.

Best Workers Comp Insurance for Small Business

Workers compensation insurance is insurance that helps to cover employees if they get hurt or sick while on the job. Each state has different definitions of employees and what types of work belongs under that label, so if you have any of the helpers indicated above, you may want to consider looking into this coverage.

Even if you're self-employed, you may find it necessary to get sole proprietorship workers compensation insurance. Think of this policy like a traditional workers comp product, except it's designed just for you - not any employees. That means if you get hurt, sick, or injured during the course of your work, your sole pro workers comp policy can cover your medical bills and wages, as well as any rehabilitation costs.

4. Consider your budget.

Every business owner chooses to prioritize different tools they use for their business and because there's money involved, that isn't always easy!

The great thing about small business insurance is that many carriers will give you the option of paying your premium either on a monthly or annual basis. Depending on your business's current budgeting needs and cash flow, you may decide one is better than the other.

5. Get expert advice.

Buying insurance is a big step, especially for a brand-new business. Remember, you should always feel comfortable with the process – never rushed – while making this important decision. Just because you can get small business insurance in ten minutes doesn’t mean you have to. Maybe you’re interested in a little more research and advice from the experts. Knowledge is power, right?

That’s where Simply U comes in - the blog where you’re reading this very article! Think of it as an online classroom for small business owners, with information on everything from insurance policies, to marketing, to dealing with less-than-ideal customers.

The resources at Simply U can help you understand the ins and outs of small business insurance and how it can protect your success. Plus, if you’re looking for how-to articles or step-by-step guides tailored specifically to your industry, start here.

6. Spend ten minutes online (really, that’s all).

Checklist in hand, now it’s time to see what kinds of insurance you should consider and compare policies from different carriers. We know, this might sound crazy – but this is the easy part!

Give yourself a few minutes, maybe grab a cup of coffee, and share a few details about your small business by filling out our quick online form. In a flash, we’ll go to work to help you find affordable and personalized business insurance.

You can see exactly what kinds of insurance are recommended for your small business, and you’ll have multiple online insurance carriers to choose from. This means you can compare rates, pick and choose the coverage you want, how you'll pay your premium, and do it all within the comfort of your home or office.

Best of all? The entire process can take as little as ten minutes.

Try it for yourself. See how insurance helps protect your business, and compare quotes at Simply Business. We specialize in small business insurance, so you can get personalized coverage at affordable prices.

7. Get your small business insurance policy.

Once you've done your research, you're ready to buy your insurance coverage and pay your premium.

Once you do, be sure to download your Certificate of Insurance (COI) so you have proof of your coverage to show potential customers. You can display your COI either in your physical place of business and/or your company website.

How is General Liability Insurance Calculated for Contractors?

General liability insurance for contractors is calculated based on:

• Payroll (aka how many employees you have)
• Business location
• Your specialty
• The types of projects you work on
• And more

Insurers will use the above information to come up with a GL policy that covers your biggest risks, as well as any employees you may have working for you.

Here at Simply Business, we make it easy to get affordable general liability insurance. Our GL policies start as low as $22.50/month*, meaning you can protect your business for a lot less than you think.

You're Ready to Get Business Insurance

By taking the 7 steps to find a small business insurance policy, you've taken great moves to protect your business. As your business grows, you may need to take additional steps to protect your business and all your hard work. Stay up-to-date on what you can do to help your business thrive by checking out Simply U, our blog for business owners.

*Monthly payment calculations (i) do not include initial premium down payment and (ii) may vary by state, insurance provider, and nature of your business. Averages based on October - December 2021 data of 10% of our total policies sold.