It’s the American Dream – no matter who you are or where you’re from, you have the freedom to follow your passions, bring your ideas to life and achieve your wildest dreams and biggest goals. For some, those wild dreams include owning their own business.
What classifies a business as a small business?
There’s such a broad range of what is considered a small business, and it varies greatly by industry. The Small Business Association has a long list of businesses that are either organized by number of employees or annual revenue. For some industries, a small business is one with less than 500 employees; for others, it’s those with $2,000,000 or less in revenue.
While the definition of a small business is broad, the impact they have on our communities is hard to deny. How does a small business impact the community? By generating jobs, providing tax revenue for local government, and allowing for a creative, thriving community.
Interesting facts about small businesses
- In America, most businesses have fewer than five employees.
- Small businesses employ 47.3% of the American workforce.
- 70% of small businesses are operated by a single person.
- In 2009, a small business filed for bankruptcy every 8 minutes.
Entrepreneurs pour everything into their small business - time, blood, sweat, tears…and money, usually lots of money. Losing all of that would be devastating but having business insurance can help.
What insurance should you get for your business?
Whether you call it business insurance, commercial insurance, or small business insurance, this coverage is crucial to protecting your organization from financial ruin from a covered loss.
These are common types of insurance for businesses:
1. Business Owners Policy
2. Commercial Property
3. Commercial Liability
4. Commercial Auto
5. Commercial Umbrella
6. Workers’ Compensation
What’s covered in business insurance?
Let’s break down these business insurance coverages and explain what they do.
Business Owners Policy – A BOP includes property, business income and liability insurance in one packaged policy. This is ideal for small and medium sized businesses.
Commercial Property – Commercial property policies protect the building and contents of a business. It may also include loss of income, which will help pay the income you would lose during the time your business is inoperable after a covered loss.
Commercial Liability – Business liability insurance helps cover the costs of legal fees, including medical payments, if someone is injured or property is damaged on your premises or because of your business operations.
Commercial Auto – A commercial auto policy is needed for auto insurance coverage for vehicles used for business purposes. It can cover multiple drivers and multiple vehicles.
Commercial Umbrella – A commercial umbrella policy will extend the limits of your liability policy to greater limits. Some commercial contracts may require a business to have a commercial umbrella policy.
Workers’ Compensation – Workers’ comp protects your business and its employees. It can provide medical treatment, both temporary and permanent, and death benefits for employees. Workers’ compensation can also protect your business from legal exposures. Alfa® agents can write workers’ compensation policies through Alfa Agency, Inc. and its group of insurers.
Every business starts out as a small business, and we’re in the business of protecting your business. Your local Alfa agent is ready to get you a free commercial quote. Call an agent today!