{"id":1470,"date":"2018-07-10T22:31:13","date_gmt":"2018-07-10T22:31:13","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=1470"},"modified":"2025-01-17T22:43:21","modified_gmt":"2025-01-17T22:43:21","slug":"small-business-insurance-basics","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/business-insurance\/understanding-business-insurance\/small-business-insurance-basics\/","title":{"rendered":"Small Business Insurance Basics"},"content":{"rendered":"

A 2018 report showed 44% of small business owners have never had small business insurance. Uninsured business owners could find recovering from financial losses due to a business-related incident very difficult. If you own your own business, educating yourself on the basics of small business insurance will help you understand why you should have a policy in place. Continue reading to learn the basics of small business insurance including the different types and what it covers.<\/p>\n

What Is Small Business Insurance?<\/h2>\n

As many questions as you have, the main one is probably what is small business insurance?\u00a0<\/em>Business insurance<\/a> (also known as commercial insurance<\/strong>) helps to cover losses due to theft, damages, or other business-related incidents. Small business insurance<\/strong>, simply put, is business insurance that\u2019s tailored for small businesses. There are many benefits of getting business insurance<\/a>. Say your business goes through a robbery, natural disaster, customer-related injury, or another devastating event. Business insurance can help pay for related expenses that the owner would otherwise pay for on their own.<\/p>\n

Who Needs Small Business Insurance?<\/h2>\n

If you\u2019re part of the 44% of uninsured business owners, you may think to yourself should I get small business insurance? <\/em>First, consider the following scenarios. If your business got robbed, would you be ready to pay out of pocket for the stolen goods? Say your business went through a flood or a fire. Would you be willing to replace the damaged inventory with your hard-earned money? What if a customer gets injured at your business? Would you want to pay for his or her hospital bills using your own income or savings? If you answered no to any of these questions, you need to get coverage.<\/p>\n

How Much Does Small Business Insurance Cost?<\/h2>\n

The cost depends on a number of factors related to your company. Some of these factors include your business\u2019 age, industry, size. Additionally, the amount you\u2019re willing to pay for your premium and deductible will also affect the cost.<\/p>\n

What Does Small Business Insurance Cover?<\/h2>\n

Your business coverage depends on which options you choose. Regardless of the industry you\u2019re in, many business owners get insured with four main types of insurance. The four main types include the following:<\/p>\n