5 Forms of Business Insurance Florida for SMBs

Insurance is often complex in nature, even if your company is relatively small. However, it’s essential that you have the right amount of coverage for business insurance Florida. Failing to consider all your needs could leave you without a financial safety net when the unexpected occurs.

Learn more about business insurance Florida with five of the basic policy types that every company should have.

1: Professional Liability Business Insurance Florida

This type of insurance is often difficult to approach, especially if you’ve just formed a company. There are no standard minimums or limits, with each company needing to buy the right amount of coverage that would protect against risk.

Because of the difficulty that comes with choosing this type of insurance, it’s important that you have expert advice throughout the process. Working with a licensed insurance agent, rather than going directly to one of the big providers, can be extremely helpful. An agent will look at your business model, the type of market that you engage with, and the level of coverage that similar businesses often purchase.

This insurance, which is also known as errors and omissions insurance, will give financial coverage when legal actions are taken against your business for failure to perform or mistakes that have been made. With the rampant filing of frivolous lawsuits in the United States, it’s one of the most important types of coverage to include in your larger insurance package.

2: Property Insurance

Whether you own the property where your business operates, or if you have signed a long-term lease, you will need property business insurance Florida. For a small or medium-sized business, damage to or loss of the property could be catastrophic. A typical policy will cover the equipment that you use, furniture and electronics, machinery, production equipment, signage, and inventory. Most policies will activate in cases of fire, theft, vandalism, accidental damage, etc.

Flooding is not always covered in a basic policy, so you need to be careful when evaluating your options. Again, an independent insurance agent will be a real asset as you explore the various policies that suit your business. Click here if you’re ready to read more about how an agent can help you to find affordable business insurance Florida.

3: Worker’s Compensation Insurance

If you own a business with four or more full-time employees, worker’s compensation insurance will be a necessity. You are required by law to cover your workers for accidents and injuries that occur on your premises, or while carrying out business duties. If you don’t have a worker’s compensation policy, you risk significant fines and crippling litigation. If you don’t remain compliant, a lawsuit will have the potential to destroy your business.

Even the smallest business needs to carefully maintain compliance. You can help to limit the financial impact of buying worker’s compensation insurance by evaluating all your potential options on the market. An agent will be able to find affordable policies based on your unique business needs, size, and type of industry that you operate in.

4: Product Liability Insurance

Any company that manufactures products for sale to general consumers or other businesses will need product liability insurance. This is an essential form of coverage that has some similarities to professional liability insurance.

With the right policy, you will be covered for:

  • Attorney bills related to legal action.
  • Injured party medical bills, repair costs, etc.
  • Settlements or judgments made against your business.

Companies that purchase this type of insurance include manufacturers, retailers, designers, wholesalers, distributors, and suppliers.

Understanding the risk will require a complete assessment of your business model and the products that you offer. This can be complex and time-consuming, and it’s not something that most mainstream insurance companies are prepared to deal with. While a lot of the risk assessment will fall within your own business, a licensed agent for business insurance Florida can help to simplify the process.

5: Business Automotive Insurance

In your personal life, you understand just how important automotive insurance is. In business, the stakes are even higher. If you own company vehicles, chances are that you will need a specialized policy. The coverage and cost are calculated by some key factors, which include:

  • Determining who owns the vehicle. If it’s owned outright by the business, it likely needs coverage under a commercial policy.
  • Determining how the vehicle is used. If the vehicle is primarily used for business and that is its only function, then a commercial auto insurance policy will be needed. If you are a sole proprietor and only use your vehicle for one or two business tasks each day, you may be able to include it in a specialized personal policy.
  • The type and weight of the vehicle will also be considered. Some vehicles, such as haulers, tow trucks, semis, commercial trailers, etc. will always need commercial protection.
  • Your liability limits will also be considered. Some general business liability coverage may extend to auto accidents. However, this all depends on the type of policy that you are currently signed for.

Due to the complex nature of determining your insurance needs, professional consultation is always recommended.

Is it Better to Work with an Independent Florida Business Insurance Agent?

Many of the largest insurers offer commercial insurance packages. However, these are often limited and inflexible in nature. Exploring the market to find the right policy could take hours of your time, and weeks of waiting for quotes and callbacks. The time it takes to find the right insurance could cut into your productivity.

An increasing number of business owners are choosing to work with independent insurance agents today. With an agent, you’ll have a sole representative who understands your needs. They will explore the market to find the right insurance policies, and provide you with options that meet your budget.

Ultimately, the fact is that you need business insurance, no matter the size of your company. Understanding this, and finding the right agent will make the process easier, more cost-effective, and you’ll enjoy the best coverage possible.

You can click here to learn more about business insurance Florida today.