Charles Spinelli Speaks About Why Business Insurance is a Must Have for Small and Startup Businesses

Charles Spinelli Speaks About Why Business Insurance is a Must Have for Small and Startup Businesses

For all startups, equipping them with small business insurance is a vital investment. Failing to get coverage of insurance for business property can make SMEs come across devastating expenses in due course of time. According to Charles Spinelli, whilst many small startups assume only big businesses require insurance, it’s not the truth. For instance, even small businesses are legally required to get certain business insurance coverage regardless they come under federal or state government regulation.

These insurances include workers’ compensation, disability insurance, unemployment insurance, etc. Laws about insurance requirements also vary between states, therefore it makes sense to visit the state’s website to determine the insurance requirements for every business.

Common Types of Business Insurance

Depending on the size, volume, risks, employee strength, and liabilities, it is always the best choice to speak to a dependable insurance agent to figure out what types of insurance coverage are the best mix for a specific business. Also, research well about the insurance service providers, and compare premiums alongside terms before determining the best deal.

General liability insurance: The business plan is designed to protect small businesses from potential claims against bodily injury, property damage, etc. For example, if a customer gets a bodily injury while visiting the showroom, the business owner may be liable for such an incident which may lead to a personal injury lawsuit. So, with general liability insurance, the small business owner need not worry as the insurer would be paying for the medical expenses as well as lost wages of the injured individual thereby preventing the business from facing a lawsuit or paying a hefty for medical bills.

Business Interruption Insurance:As Charles Spinelli says, while temporarily shutting down of business because of any natural disaster like flood, earthquake, fire, etc. is nothing uncommon, having a business interruption policy supports a business by meeting their lost income due to discontinuity of business operation. Apart from lost earnings, the insurance also pays for damaged goods as well as extra expenses say for the necessity of moving the business to a nearby location for its temporary operation.

A Business Owners Policy: Any small business with 100 or fewer employees and making revenue of up to $5 million is the right candidate to consider BOP as per the Insurance Information Institute. It comes as the most affordable way to get bundled business insurance coverage including general liability insurance, commercial liability insurance together, and business interruption insurance.

Commercial Auto Insurance: small businesses that own cars, delivery vans, or trucks and that are used for different business purposes, should have coverage of commercial auto insurance. Ignoring insurance coverage for commercial autos may end up paying from the business owner’s pocket in case of any road accident and damage, which could be costly for the business.

Errors and Omissions Insurance (E&O): Those who are professional service providers such as accountants, graphic designers, advertising agencies, interior decorators, tax assessors, or real estate agencies need to equip them with Errors and Omissions Insurance without fail. Aka professional liability insurance, the insurer will be liable for paying out the customer’s claim against any type of mistakes in the services like inaccurate advice, violation of fair dealing and good faith, misrepresentation, negligence, etc.

Working as a cornerstone in risk management, business insurance protects a business owner in managing liabilities and risks while protecting its assets, resources, and employees and ensuring the continuity of the business. As a safety, it enables business owners to focus on their business growth and success. So, considering the importance of business insurance and having the appropriate coverage based on the risks and liability factors a business is vulnerable to SMEs can nativity all uncertainties and protect their operation confidently while enjoying long-term business prosperity.


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