November 20

Small Business Insurance in Florida – 8 Types that Every Owner Should Have


Understanding the scope of insurance and its benefits is often challenging for small business owners. Many small businesses operate on a shoestring budget, and they have minimal reserves to make up for any unexpected losses.  As a result, such businesses need proper insurance to keep their assets and operations during an unfavorable event.

Without small business insurance in Florida, proprietors are bound to lose clients. Reputable companies and clients don’t prefer dealing with businesses that do not take out time to secure their own operations. 

While we do understand the challenges confronting small business owners, they should not make the mistake of ignoring insurance regardless of the financial position. The cost of insurance may eat up on your profits in the short run, but it leads to stability and invites potential investors and clients to your business in the long run.

There are countless benefits of small business insurance in Florida. To help you get an idea of what you are missing out on, we have divided all the benefits into three main factors. 

Benefits of Small Business Insurance in Florida


  • Reduced Liability


The most crucial advantage of small business insurance is that your liability is covered. You see, many businesses are covered for accidents on site. If someone gets injured at your place and you don’t have access to liability insurance, you will end up covering the injured person’s medical expenses for the rest of your life. 

Completely ignoring the possibility of an act occurring is a mistake that many small business owners make. While the chances of an accident occurring in a small office space are minute, it can lead to severe consequences when it does happen. A person tripping over a fixture or equipment and twisting their ankle can sue you for damages even though the accident was not your fault. Since the accident took place on your office premises, you are liable to pay. Given the nature of the law, you might end up paying significantly more for a sprained ankle.

Having an insurance cover in place will help you in such situations. It does not matter whether the person affected is an employee, visitor, or client.


  • Prevention Against Robbery


Small business insurance will cover the cost of equipment or goods that were stolen. If a break-in results in the loss of goods and assets, then the insurance policy will cover you for the loss inflicted. However, for the coverage to take place, it is imperative to insure all the property and office equipment.  

Losing assets can be a damaging ordeal for all businesspersons. The effect of a robbery is more severe in brick-and-mortar stores as their owners don’t have the resources to back up the lost assets. This is why all small businessmen should insure their assets.


  • Hedge Against Natural Disasters


The next significant incident that insurance rescues a small business from is natural disasters. By getting small business insurance in Florida against natural disasters, you will protect your assets and inventory in the case of a natural disaster or an earthquake.

The cost of repairing everything in case of a natural disaster is significant. A good insurance policy will cover the cost of replacement and provide you the guarantee that your business is always up and running. 

A small business loan in Florida can make a world of difference for owners and entrepreneurs, especially for those that are just starting. All entrepreneurs have to sacrifice and compromise a fair share to start their dream business venture. 

An insurance policy offers peace of mind to the business owner that their assets are safe and secure in the event of a mishap.

Now that the significance of an insurance policy is clear upon us, here are some of the insurance policies that a small business in Florida should opt for. 


  • General Liability


The liability insurance protects your business from general claims that include body injuries and property damages. Given the significance of the type of insurance, every business should opt for it. General liability may also come in handy in the case of any damage to the property of your landlord.  

However, general liability does not cover injuries that happen to the employees or auto accidents. The liability also does not cover punitive damages, intentional acts, or professional mistakes.

The policy is a great tool that protects you from damages in the case where your employees or services hurt a third party. 


  • Property Insurance


Almost all small businesspersons own property from which they manage their operations. A building or land where the business manages its operations is protected with the help of property insurance.

You should choose an insurance scheme that protects you in the case of fire, vandalism, and theft. In short, the policy looks after all kinds of damages to the property.

Property insurance, like all other types of insurance, is essential for businesses in Florida because natural factors and other exogenous factors are beyond the control of the owner. Rather than risking damage to the business, it is best to choose a policy that protects the property.


  • Business Interruption Insurance


Business Interruption Insurance (BII) is also known as business income insurance. This is a type of insurance that is responsible for covering the loss of income a business suffers in case of a disaster.

A fire or a natural disaster of any sort hinders the progress of a business. By securing a BII policy, you can cover for the loss in income resulting from the disaster. However, this type of policy is only effective if the reason for the loss of income is covered by the underlying property/casualty policy.

The insurance policy works in a very coordinated manner. It is very robust in nature, since all concerns are cleared at the time of the formation of the plan. The coverage of the policy lasts until the end of the business interruption period. The business interruption period is discussed and agreed upon during the formulation of the plan.

The policy defines the period in which the peril began and the date till the damaged property is repaired again. The policy also clearly mentions the state and the extent to which the property must be restored. For instance, it is essential to restore the damaged property to its original condition before the disaster took place.

The policy is popular among small businesses because of the aspects that it covers and oversees. It ensures the reimbursements of profits and also accounts for fixed costs for the period. Some policies go as far as providing a temporary space for managing business operations for the clients. Some businesses are often due to loan payments monthly. The coverage helps these businesses repay their loans even when they are not generating any revenue.


  • Commercial Auto Insurance


Many small businesses require auto insurance to cover for the car, trucks, and vans they use for managing their business. Whether these vehicles are used to deliver the goods to a customer or bring staff members to work, they are crucial for a business’s day-to-day operations. Damage to motor vehicles can affect the operations of a small business. Since small businesses rely on a well-connected and interlinked production chain, even the smallest of changes will affect the production of the business.

This is why all small businesses should look to insure their motor vehicles using the commercial auto insurance policy. Commercial auto insurance, like the personal auto policy, provides the business with similar coverages such as liability, collision, medical payments, and insurance for the uninsured motorist.

While there are similarities between personal auto insurance and commercial auto insurance, there are significant differences too. The difference between the two policy types may revolve around the coverages, exclusions, and limits that each service type offers its clients.


  • Workers Compensation


Workers’ compensation is a form of insurance that provides users with wage replacement and medical benefits. This is an insurance that is responsible for covering the cost of medical rehabilitation and securing the lost wages for employees that are injured at work.

While the United States calls for financial compensation of employees for their services, there are only some states that mention the need for compensation coverage. States like Florida require employers to purchase and hand over an insurance policy to workers who are injured in the workplace.

All businesses, regardless of their size and scale of operations, are required to follow the law. The law clearly instructs businesses to provide insurance to their workers. Employers can meet the obligations for worker compensation by purchasing an insurance policy from an insurance company.


  • Product Liability Insurance


Product liability insurance is essential for small businesses and helps them in providing a product rather than a service. Product liability is associated with an issue when a problem arises with a product, and you can trace the source of the problem back to the business that sold you the product.

If your business, for some reason, is found responsible for a problem related to the product, then you can expect a hefty lawsuit coming your way. Not only is a lawsuit expensive, but it is also time-consuming too. Your product liability insurance can help in protecting you from all legal and medical costs that may arise in situations such as these.

Common problems that are part of this insurance policy are faulty products. The insurance policy also accounts for products that result in injury for a customer. It can also include products that can result in property damage or illnesses which are a result of food or beverage. 


  • Equipment Breakdown Insurance


All business types require equipment to manage their daily operations. The same equipment that businesses use can also breakdown halting the production chain and affecting the supply. 

With the help of commercial property insurance, you can replace inventory, furniture, electronics, and computers. The coverage is not limited directly to the equipment that the business uses but also extends to the accessories and things placed outside the office. This can include signs of the business and the fencing, trees, and shrubs located outside the store/place of business.

The insurance helps in mitigating the costs incurred by providing the required coverage. The coverage helps in maintaining the continuity of the business and protects your relationship with the clients.


  • Renters’ Insurance


Renters’ insurance is a policy that is a direct offshoot of the homeowner’s policy. This policy is directly applied to the people who rent their homes. The coverage protects against damage to physical property and personal injury at home.

There are many other types of insurances that can come in handy for small businesses. Small business insurance in Florida will provide much-needed relief for the owner, as now they are free from the fear of the unknown.

Call us at 407-344-1228 or email us at [email protected] or any insurance needs you may have.


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