Best Apps for Insurance for Small Businesses in 2023
Small business insurance refers to various types of insurance policies that are designed to protect small businesses from financial losses caused by unexpected events or accidents.
Small business insurance can include a range of coverages, such as general liability insurance, commercial property insurance, workers’ compensation insurance, and professional liability insurance, among others.
What Is Considered Small Business Insurance?
Generally, any insurance policy that is purchased by a small business can be considered small business insurance.
However, the specific types of coverage that a small business needs will depend on a variety of factors, including the industry in which the business operates, the size of the business, the number of employees, and the specific risks that the business faces.
In general, small business insurance is designed to protect a business from financial losses that could arise from property damage, liability claims, employee injuries, or other unforeseen events.
By purchasing the appropriate types of insurance coverage, a small business can help to mitigate these risks and protect its assets and financial stability.
What Does Small Business Insurance Cover?
Small business insurance covers a wide range of risks that a small business may face. The specific coverage included in a policy will depend on the type of policy and the needs of the business. Here are some common types of small business insurance and what they cover:
General liability insurance:
This type of insurance covers a business against claims for property damage, bodily injury, and personal injury that may arise from its operations, products, or services.
Commercial property insurance:
This type of insurance covers a business against damage or loss to its physical property, such as its building, equipment, and inventory.
Workers’ compensation insurance:
This type of insurance benefits employees who are injured or become ill due to their work.
Professional liability insurance:
This type of insurance, also known as errors and omissions insurance, covers a business against claims for damages arising from mistakes, negligence, or errors in professional services provided by the business or its employees.
Cyber liability insurance:
This type of insurance covers a business against losses resulting from cyber attacks, data breaches, and other cyber-related incidents.
Business interruption insurance:
This type of insurance covers a business for lost income and expenses resulting from an unexpected interruption to its operations, such as a natural disaster or another catastrophic event.
What Does Small Business Insurance Cost?
The cost of small business insurance varies widely depending on the type and amount of coverage needed, as well as other factors such as the size and type of business, the industry, the location, and the number of employees. Here are some factors that can affect the cost of small business insurance:
Type of coverage:
Some types of coverage, such as general liability insurance, are typically less expensive than others, such as cyber liability insurance.
Businesses in certain industries may be more prone to risks, and may therefore have higher insurance costs. For example, a construction business may have higher insurance costs than a retail business.
Size of business:
The number of employees and the annual revenue of a business can impact insurance costs, with larger businesses typically paying more for coverage.
The geographic location of a business can also impact insurance costs, with businesses in areas prone to natural disasters or high crime rates typically paying more for coverage.
The amount of the deductible, or the amount the business must pay before insurance coverage kicks in, can also impact insurance costs.
Why Do Small Businesses Need Insurance?
Small businesses need insurance to protect themselves from financial losses that could result from unexpected events or accidents. Here are some reasons why small businesses need insurance:
Some types of insurance, such as workers’ compensation insurance, are legally required for businesses in certain states or industries.
Protection against liability:
Small businesses can face liability claims for property damage, bodily injury, and personal injury that can be expensive to defend against and pay for. General liability insurance can help protect against these types of claims.
Protection of assets:
Small businesses often have physical assets such as buildings, equipment, and inventory that could be damaged or lost due to events such as fires, theft, or natural disasters. Commercial property insurance can help protect against these types of losses.
Protection of employees:
Workers’ compensation insurance can help protect employees who are injured or become ill as a result of their work.
Protection against cyber risks:
Small businesses can be vulnerable to cyber attacks, data breaches, and other cyber-related incidents that could result in financial losses or damage to their reputation. Cyber liability insurance can help protect against these types of risks.
Protection against business interruption:
Small businesses may be forced to temporarily shut down or reduce operations due to unexpected events such as natural disasters or equipment failure. Business interruption insurance can help cover lost income and expenses during these periods.
Best Apps for Insurance for Small Businesses:
Policygenius is an insurance marketplace that allows users to compare insurance policies from various providers and apply for coverage online. The app offers a range of insurance types, including life, disability, health, and pet insurance.
Lemonade is a digital insurance company that offers homeowners, renters, and pet insurance. The app allows users to apply for coverage and manage their policies entirely online, and claims can be filed and processed quickly using the app.
Allstate Mobile is the official app of Allstate Insurance, allowing users to apply for insurance, view policy information, and file claims online. The app also offers features such as roadside assistance, vehicle maintenance reminders, and personalized driving feedback.
GEICO Mobile is the official app of GEICO Insurance, offering users the ability to apply for insurance, view policy information, and make payments online. The app also includes features such as roadside assistance and a digital ID card.
Nationwide Mobile is the official app of Nationwide Insurance, allowing users to apply for insurance, view policy information, and file claims online. The app also offers features such as roadside assistance, bill pay, and personalized driving feedback.