On average, only about 60% of small businesses with employees in the U.S. survive beyond two years, as reported by the Small Business Administration (SBA). The most common causes of small business failure include, among others, lack of market need, stiff competition, natural calamities, lack of finances, and legal challenges, as published on Statista. Thankfully, you can purchase the right insurance policies to protect your small business against natural perils, as well as legal liability and property damage. With the right insurance policy in place, you will save your business from losses and costs resulting from damage and lawsuits.
If you are looking for the best insurance policy for boosting your small business, here are four policies you should consider.
1. Workers’ Compensation Insurance
In 2019 alone, over 2.8 million work-related illnesses and non-fatal injuries happened in the U.S. private sector, as reported by the U.S. Bureau of Labor Statistics (BLS). When such issues happen in your business, you will need to cater to the lost wages and medical costs of the affected employees, and paying out of pocket may harm your business financially. Fortunately, the workers’ comp covers these costs to help you stay afloat even when injuries and illnesses occur at the workplace, although it is optional for private employers in Texas, as per the Texas Department of Insurance (TDI).
2. General Liability Insurance
Depending on the type of business you’re running, your operations may cause injury to a third-party at some point. For example, your transport vehicle may hit a pedestrian, attracting a lawsuit, which in turn puts your property and finances in jeopardy. The good news is that general liability insurance covers the costs resulting from legal claims and lawsuits, thus protecting your assets from being claimed or auctioned.
3. Property Insurance
Natural disasters such as floods and earthquakes are among the leading causes of property damage in U.S. businesses. According to the Federal Emergency Management Agency (FEMA), about 40 to 60% of small businesses don’t reopen after a peril due to massive losses, while those that reopen collapse shortly after. To protect your business property from losses caused by natural perils, theft, and vandalism, you should purchase the right property insurance. It will help you bounce back after a calamity.
4. Cyber Insurance Coverage
A study done by the University of Maryland indicates that cyberattacks happen every 39 seconds on average. This means your business data is at risk, which may cost your business a lot of money. For example, in 2016 alone, more than $100 billion losses in the U.S. economy resulted from cybercrimes, as reported by the Office of the President of the United States. This shows just how severe cyberattacks are and why you should purchase the right cyber insurance coverage for your business.
To boost your business with an insurance policy, you need to choose the right business insurance. If you are looking to buy the best commercial insurance, contact the experts at Gant Insurance Agency in McKinney, Texas. We are ready to help you with all your coverage needs today.