Small businesses make up over 60 percent of new private-sector jobs, according to the U.S. Small Business Administration. Small businesses are necessary in creating a healthy economy.
However, small businesses have been the ones that suffered the most during the COVID-19 pandemic. Roughly about 60 percent of the small businesses that have closed during the pandemic have shut their doors permanently.
Despite these numbers, however, there is hope for small businesses. Thousands of new small businesses have been created each month during 2020.
If you are a new small business owner, keep reading for everything you need to know about creating a successful small business.
The One Thing A Small Business Must Have
Getting small business loans is often one of the first items on a checklist when starting a new small business. The CARES Act for small businesses was a lifeline to many small businesses this year in providing funds to stay afloat.
Small businesses must get one other thing when starting. This one thing small businesses must have insurance coverage.
Small business insurance coverage is necessary for many reasons. It can help protect your financial assets and help you avoid legal risks. Insurance can also help keep your business running during unforeseen circumstances.
Required Insurance for a Small Business
Many states require that a small business carry a few different types of insurance. One common one that many require is workers’ compensation insurance.
This insurance is used in case one of your employees is hurt while on the job. If they bring a lawsuit against your small business, workers’ compensation insurance will pay out any fees or settlements.
Disability insurance is another form of insurance required by many states. This type of insurance covers a part of an employee’s income in the event that they cannot work because of an injury or major illness.
Recommended Insurance for Small Businesses
In addition to the required types of small business insurance coverages listed above, there are a few other recommended insurances for small businesses.
General liability coverage is a type of coverage that a small business needs. This covers most liability claims, such as bodily injury, property damage, libel, slander, and more.
Commercial property insurance is another instrumental type of small business insurance. This covers your business’s building, tools, equipment, inventory, and other physical items that are necessary for running your business.
Learn More About How to Choose The Best Small Business Insurance
Small business growth is a key indicator of economic success. If you are a new small business owner, congratulations on starting your business during a difficult year.
If you are a new small business owner, it is critical that you make sure you have the appropriate coverage required by your state. You also need any extra coverage that fits your business’s needs.
Reach out to us today to learn more about starting a small business and what you need for small business insurance coverage. We can help give you all the info you need.