Everything You Need to Know About Business Insurance [Complete Guide]

Female Business Owner Standing in Front of Small Vintage Store

We in the United States love entrepreneurs and small business owners. According to the Annual Entrepreneurs Survey conducted by the Census Bureau, in 2016 there were more than 6.6 million small businesses with fewer than 20 employees. In the same study, an estimated 98.2 percent of all businesses in the United States are small businesses with fewer than 100 workers.

Because small businesses are an essential part of our country’s economy, it is important to protect them from different risks. That’s why today, we take the time and create this article with everything you need to know about business insurance.

How Risky Is It to Start a New Business? Is It Worth a Try ?

Young Entrepreneur Celebrating Business Success

Most entrepreneurs have fire in their soul, passion, confidence and a clear purpose to make their businesses successful.

But to ensure the success of your small business, you’ll require more than guts. To guarantee success, you must try to reduce or mitigate the risks that your business could face.

One of the best ways to take action about risks and the coverage of large expenses for obligations that may arise due to errors in your operations is to obtain a commercial insurance policy.

Being an entrepreneur is a unique and rewarding experience when you succeed. But the road to success is not a modern highway. It’s more like an old road with holes, curves, and steep and slippery slopes.

Unfortunately, there are people who, when they think about starting a new business, don’t know about the responsibility they are getting into. By not creating a solid and realistic business plan, your business may fail during its early years, perhaps the first year.

We Want to Share Some Statistics Provided by the Small Business Administration

  • 30% of new businesses in the United States fail during the first 2 years after being open
  • 50% fail during the first 5 years
  • 66% close in the first 10 years
  • Only 25% of small businesses survive more than 15 years

Of course, we know that owning a small business is not easy. But the key to success is having a realistic and solid business plan, good financing, having good online presence, and also having the best commercial insurance coverage.

And with these statistics, we don’t want to take away your will to start a new business. On the contrary, we just want you to prepare yourself and be a successful business person.

One of the main concepts in finance is the relationship between risk and return. The higher the risk, the higher the return. Small businesses are high risk investments, but by doing everything right, the owners can make excellent profits.

And yes, it’s worth starting a new business, but it’s even more rewarding to be successful with your business idea.

We invite you to continue reading this article because here you will be updated with everything you need to know about business insurance.

Why Don’t Some Small Businesses Pay Insurance? And Why This Shouldn’t Be So?

One of the reasons why small business owners don’t get an insurance policy is because they aren’t aware of the risks and obligations. Also, they may choose not to pay insurance as a “decision to reduce costs.”

When it comes to civil liability, many business owners don’t know what their obligations are.

When you don’t know what your obligations are to the community, chances are you would receive a lawsuit from one of your clients, employees, and other businesses.

We all know that the costs of litigation and damages are high. And because a small business doesn’t generate a significant profit margin in its early years, a lawsuit could mean the end of the business venture.

By being aware of what you should know about business insurance, you’ll have a better chance of making your business successful.

Insurance Policy for Small Businesses: It’s Like the Safety Net Under the Tightrope !

Businessman Walking on Balancing Slackline Rope

All businesses are different. So, no matter if you’re a seasoned business owner or if you’re a new entrepreneur, there are always a lot of new things to learn.

As mentioned earlier, owning your company is a unique and exciting experience. Have you ever tried to walk on a tightrope? A wrong step and you’re gone!

Running a small business is like walking on a tightrope. If your business makes a mistake, and this mistake leads to a lawsuit, that could be all for your business dream.

It’s here when commercial insurance policies come into play. If running a small business is like walking a tightrope, commercial insurance is the safety net.

If you have no insurance for your business and someone falls and gets hurt inside your company’s facilities or if a dissatisfied customer demands you, you could be facing an overwhelming legal process.

A commercial insurance policy will better protect you from risks that your business faces every day. For example, with our business insurance policies, here at Pay Less Insurance, we reduce the economic losses of your business by covering the costs of litigation or payment for damages to third parties—even if you have not made a mistake.

7 Types of Insurance for Businesses [We Help You Choose the Protection You Need]

Collage of professions, gardener, builder, car mechanic, doctor, etc.

Our business insurance plans are requested by general contractors, accounting firms, marketing agencies, legal services agencies, doctors’ offices, chiropractors, dentists, real estate agents, clothing stores, furniture, home goods stores, etc.

No matter what type of business you have, Pay Less Insurance offers you the best commercial insurance in Houston TX.
Click on the following link to find out what we offer you with our business insurance in Houston TX.
Now, we’ll explain the different types of business insurance.
As a business owner, it’s your obligation to be aware of everything you need to know about business insurance.
Knowing what your obligations are to your clients and the community you serve will give you the needed level of stability to be successful.

1. General Liability Insurance

This type of insurance is also known as business liability insurance or general civil liability.
All businesses must have this type of insurance. This will protect you from general lawsuits that may arise due to bodily injuries, property damage, personal injuries, negligence, and other claims that might arise due to your business operations.
Our general liability insurance covers medical costs, expenses for damage to third-party property, legal defense, expenses to reach agreements, defamation losses, and slander to your business or to your person.

Click on the following link if you want to know more about our general liability insurance.

Here you can learn about the benefits that our insurance package offers to your business. If you want to get more information about our insurance plans or get a free quote for commercial insurance, call us at (832) 804-9286.

If you don’t want to talk right now, don’t worry. You can book an appointment by filling out the form on the right upper corner of this blog post.

2. Product Liability Insurance

Our business insurance also protects companies that distribute, manufacture, or sell products as part of their business operations.

The right protection for your business will depend on the level of risk. For example, a company that sells electronics has a higher level of risk than a company that sells mops, brooms, and cleaning supplies.

Knowing the types of insurance is within everything you need to know about business insurance.

3. Insurance Against Errors and Omissions

This type of insurance protects businesses that offer services.

We know that when you offer a service, mistakes can happen at any time. And there are some mistakes that can even get out of your control.

But don’t worry! You can count on Pay Less Insurance. We protect you from monetary costs (lawsuits) for mistakes that unfortunately your company was involved or was the main cause.

4. Commercial Property Insurance

This insurance is suitable for companies which operation depends specifically on expensive equipment or devices.

Our insurance will protect you in case of vandalism, theft, or damage due to natural disasters.

In general terms, our insurance will cover your costs due to interruptions of your company’s operations and losses in your income.

Click on the following link to learn more about the importance of commercial property insurance!

Here we’ll go into more detail about why as a business owner you must protect your commercial property.

5. Commercial Car Insurance 

Business Car Insurance Covers Minibuses, Vans, Pick-ups, Trucks, etc

You or your employees use vans, trucks, or other vehicles to deliver products, collect supplies, make sales visits, or do other vital business activities.

We know that accidents can happen at the least expected time. But don’t worry, we bring you good news!

There is a type of insurance that offers the best protection for your fleet of commercial vehicles. This is commercial auto insurance.

This insurance policy protects cars that carry your employees, your products, or valuable equipment for your company.

We know that your business has costed you a lot of sacrifice. Thus, now your mission should be to protect and then grow your business.

When it comes to our commercial auto insurance, Pay Less Insurance can secure the work of your SUVs, vans, pickups, and other car models from damage and collisions.
Also if your employees drive their own cars while doing errands for your business, you can get non-owner car insurance. In this way, we help you always protect your business in case your employees don’t have adequate insurance.

Call Now: (832) 804-9286

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