Choosing the Right Small Business Insurance Coverage

Small business owners face a variety of challenges in building their companies. Defending a liability lawsuit can be one of the biggest obstacles to success. For that reason, many small business owners turn to Preferred Insurance in Texas to help them mitigate risk and manage liability.

Start With the Basics

Most entrepreneurs choose some basic coverage to protect their companies. A general-purpose policy typically combines property insurance with limited business liability protection. Generally, commercial property insurance covers the following types of loss:

  • Physical Damage Due to Storms, Fire, or Vandalism
  • Loss of Use of Property
  • Property Loss Due to Theft or Embezzlement

Business liability insurance typically covers the following:

  • Negligence Claims
  • Defective Products or Services
  • Misstatements

Add Adjacent Coverage

In addition to basic coverage, many small business owners choose to purchase coverage for additional risks. For example, business interruption insurance covers loss productivity if a business must close due to other loss. Similarly, small businesses frequently purchase insurance to protect the company if a key member of the business becomes ill.

Consider Additional Protection

As small businesses grow, many companies purchase workers compensation insurance, automobile insurance, and even commercial liability umbrella policies. By working with Preferred Insurance in Texas, small business owners can analyze risk and purchase effective insurance coverage. Those that grow quickly typically evaluate the insurance needs frequently to avoid gaps in coverage.

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