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Integrity Recommends: Insights on Small Business Insurance

If current market trends are any indication, small businesses are not only beginning to see a resurgence in the marketplace, but they are also likely to continue growing. The medical sector, technology, and construction companies are all growing at a rapid rate due not only to changes occurring as a result of the pandemic, but also because of the current administration’s promises to overhaul the country’s economy and infrastructure.

Businesses, regardless of their size, are all exposed to risk and potential loss. That risk can be catastrophic without the right protections in place. Well-crafted insurance is important for future- proofing businesses, and the purchase of coverage is not something which should be taken lightly by business owners.

Independent insurance agents can help guide businesses through their risk management process. There are many essential aspects to the process, but it ultimately boils down to understanding the business, understanding the industry, and finding the ways that risk can creep in. The best policies are those that are individually tailored to the businesses that they serve and the specific risks that those businesses may face.

The following types of insurance are among those that small businesses should consider, though this list is by no means exhaustive:

  • Property Insurance covers physical locations and their contents. It usually handles things like fire and theft and can be applied to areas that are owned or rented. It is important to note that it likely will not provide coverage for things like floods ,or issues that have their own types of policies.

  • Cyber Insurance is meant to bolster companies against risks such as cybersecurity penetration, data theft, and other technological- based concerns. This is one of the fastest growing risk management areas in the country and is likely to continue along that trendline into the future.

  • Commercial Automotive helps cover businesses for damage to or loss of vehicles that are being used by the business. It also helps cover damage to others that has been caused by business vehicles.

  • Casualty is liability coverage that covers business locations from exposures such as falls, slips, manufactured products, and (on the jobsite) completed operations exposures.

  • Commercial Umbrella is used to extend the limits of underlying policies and to help replace coverage once those limits have been reduced or exhausted completely.

  • Workers’ Compensation is meant to cover employees who have been hurt while working. If you have even one employee, by law, you have to have workers’ compensation insurance.

  • Business Continuity plans are also something important to consider. Should a business undergo any sort of emergency or crisis (such as a pandemic, for example), a plan needs to be in place to outline a response and recovery from that crisis. It also helps to safeguard employees and assets during these times of crisis.

When initially considering business insurance, your agent will go over your needs, what may benefit you, and solutions for risk management issues. Moving forward, premium audits are performed. The word “audit” often brings about anxiety, especially since it is most often associated with the IRS. In this case, there is nothing to be concerned about. All a premium audit does is help the insurance company keep coverage and premiums in line with each other, meaning you will only be paying for the coverage that your business actually needs.

Often, these audits will include information about payroll, sales, and subcontractors (among other things). All insurance companies require the completion of premium audits. Without them, Audit Noncompliance charges could be incurred. Generally speaking, these audits will be conducted on an annual basis and often require nothing more for completion than accurate recordkeeping.

One final thing to consider: insurance coverage is not a static thing. Just like the risks that a business faces can change on a day- to- day basis, so can insurance needs. Every new project, ever new undertaking, and every change that a business makes can bring about new and unique risk exposures. It is essential to not only stay in touch with your insurance professional, but also complete a review of business insurance with them annually. If you make any changes to your business or purchase new equipment, give them a call so they can analyze how this might affect current policies as well.

For more information on Integrity and how they can help with your commercial insurance, contact Wayne Nesbit at 952-746-4312 or

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