Starting a small business is exciting! But, with so much to think about, it can be easy for things to be overlooked. With one mistake, accident, or lawsuit, everything you have worked for can go down the drain. This is why small business insurance is essential! You can protect yourself and your business from the unforeseen risks of tomorrow, with a small investment today!
You wouldn’t work on a large construction site without a hardhat or take pans out of the oven without hot pads – running your business without the proper insurance protection is the same.
Some different types of small business insurance:
- Workers’ Compensation Insurance (Required):
- Covers medical expenses and wages lost for employees injured on the job.
- Required by law if you have employees
- Commercial Auto Insurance (Required in some cases):
- Provides liability coverage, personal injury protection, and coverage for physical damage caused by company owned vehicles
- Required by law if your business operates vehicles
- General Liability Insurance (Recommended):
- Protects your business from the claims of a third-party regarding property damage, advertising damage, and bodily injury
- Property Insurance (Recommended):
- Covers damages to physical assets of your business
- Business Interruption Insurance (Recommended):
- Covers cashflow losses from temporary closure of your business caused by a covered event such as fires or storm damage
- Professional Liability Insurance (Recommended for certain businesses):
- Designed for businesses that provide professional services, common examples include: accountants, consultants, and insurance agents
- Covers claims of negligence, mistakes, or inadequate work
- Cyber Liability Insurance (Recommended):
- This policy covers costs associated with data breaches, cyberattacks, and identity theft
- Even seemingly ‘non-digital’ businesses are exposed - if you have customer information in an email system or digital file – you need this
What Affects the Cost of Small Business Insurance in Delaware?
While it may be difficult to put a price on the peace of mind that comes with protecting your company, the cost of small business insurance in Delaware depends on several key risk factors. Every business is unique, so premiums are customized based on how much risk an insurer is taking on.
Let's briefly go over a few of those factors below!
Industry and Type of Work:
- Higher-risk industries like construction or food service typically pay more than low-risk service businesses.
- Business Size and Revenue:
- A larger business typically has greater exposure, which can increase Delaware small business insurance rates
- Number of Employees and Payroll:
- More employees usually means higher workers’ compensation and liability risk.
- Location and Property Risks:
- Where your business operates in Delaware can influence weather, crime, and property risk.
- Claims History:
- Businesses with previous claims may see higher premiums because insurers view them as higher risk.
- Coverage Types and Limits:
- More coverage and higher limits provide stronger protection but increase costs.
- Deductibles:
- Choosing a higher deductible can lower monthly premiums.
- Safety Practices and Risk Management:
- Strong safety programs and security measures can help reduce costs.
Do I need small business insurance for an LLC?
Yes, you do! While a Limited Liability Company may offer a liability shield for your personal assets, it does not protect you from:
- Lawsuits
- Injuries
- Customer claims
- Property damage
- Legal fees
Conclusion:
Small business insurance is one of the smartest investments you can make. Choosing the right coverage for you and your business is important; you could end up with too much coverage or far too little. You’ll want someone to help you look at multiple options and think through common risks.
Whether you have been doing business for a long time, or are just getting ready to open your doors, we can help – we've been helping business owners protect their businesses for over 30 years.
About A to Z Insurance
For over 30 years, A to Z Insurance has helped Delaware-based businesses create tailored protection strategies that balance their unique needs. With offices in Milford, Georgetown, Dover, and Wilmington, our team combines deep local expertise with access to carriers experienced in serving their customers.
We do more than provide quotes. We work with you to understand your risks and build insurance portfolios that safeguard your business
Visit our Business Owner’s Insurance page to learn more about protecting your business, or contact any of our Delaware offices to discuss the right coverage for you.