By Alexis Swann, TowneBank
I partner with many small businesses on their journeys from getting started to building an empire. Throughout my career, I’ve learned that being a small business owner is not just about running a business but also putting in the time and energy to help it grow.
Having a solid business plan includes developing a partnership with a banker, an insurance provider and someone to guide you through healthcare and individual benefits to set you up for success.
Navigating the world of small business insurance
Business insurance is a vital component of your financial picture. Understanding the different types of small business insurance can be overwhelming. Here are some insurance coverages that are important for small businesses. Of course, there are others that should be considered:
Property and liability insurance:
This type of insurance protects you in the event of fire, flood and some natural disasters, as well as judgments for accidents on your property or involving your employees. A major advantage to this coverage is that the provider is obligated to provide defense counsel should you be sued.
Workers’ compensation: This insurance protects employers from lawsuits for most on-the-job injuries. It covers medical expenses, lost wages, permanent disability payments, legal defense costs and death benefits. This insurance is typically required for businesses by most states, but each differs in its requirements.
Employee health, life and disability insurance: You may choose to offer health insurance, life insurance or disability insurance to your employees. Whether or not this is part of your employment package depends on several considerations, one being affordability. A benefits consultant can help you walk through all the intricacies of benefits plans should this be an avenue you wish to explore.
Business interruption: This is an insurance policy that can protect you if there is a temporary business closure in the event of a fire or other circumstances. Most business interruption policies reimburse the firm for lost net profits and ongoing expenses.
Vehicle Insurance: A vehicle insurance policy is different from a personal one and can protect you if you or an employee has an accident while driving a company vehicle.
There are several other insurance policies business owners should consider with varying levels of priority. An insurance professional can help you with the right coverage you need depending on the size of your business and your industry.
I love helping small businesses get established and watching them grow. If you need help understanding what coverage will help your business thrive, reach out to your professional banker and insurance consultant.
Member FDIC | Insurance and investment products provided by Towne Insurance and Towne Benefits, subsidiaries of TowneBank, are Not a deposit, Not FDIC-insured, Not guaranteed by TowneBank or any government entity, and may go down in value.
Alexis Swann serves as TowneBank president for the Peninsula and Williamsburg regions. She is responsible for providing proactive financial solutions and extending a culture of care to all TowneBank members. She can be reached at TowneBank.com/AlexisSwann.
