You put a lot of time, money and effort into running your small business. Theft, equipment damage, injury and other risks cause significant financial harm, but commercial insurance helps you to continue operating. Approximately 40 percent of companies file at least one claim in 10 years, with the potential to avoid up to $50,000 in damages. Explore 10 of the top small business insurance claims.
Thieves take advantage of limited or non-existent security systems in small businesses. They steal inventory, supplies, equipment, money and other valuable items. They’re limited to the amount they can carry and transport from the store, which helps to limit the overall cost.
2 Reputation Harm
Did you talk poorly about your competitors in ads or other marketing material? If you cause that company to lose sales as the result of your actions, you may be liable for the harm inflicted on its reputation. Since this risk involves an intangible element, you may have to go through a lawsuit to determine your responsibility for lost sales.
3 Water Damage Floods, broken roofs, leaky windows and burst pipes allow water into your small business. You lose critical equipment or significant portions of your inventory. Your commercial real estate may also become damaged as the water flows through the building.
4 Slip and Fall Customers could slip or trip on hazardous areas in your small business. While the consumer’s health insurance may cover injuries resulting from an accident, your company may hold the financial liability.
5. Fire Even a minor fire causes a significant financial loss because smoke-laden inventory may become unsalable. A large-scale fire could wipe out the entire building. You would have to start your business from scratch in this situation.
6. Equipment Damage Many small businesses depend on hard-to-replace equipment to power their daily operations. If you can’t operate due to device damage or failure, your small business insurance claim gives you the money needed to get back to work.
7. Car Accident Do you use company vehicles, such as tool trucks? Commercial vehicle insurance covers high-priced specialty vehicles, expensive business supplies damaged in an accident and other claims that go beyond standard auto insurance.
8. Product or Service Liability Your goods and services may cause harm to your customers, such as an injury resulting from a poorly manufactured piece or significant business losses due to bad advice.
9. Customer Damage An absent-minded customer could destroy fragile merchandise or disrupt the operation of key business equipment. You don’t know whether that person holds an insurance policy capable of covering your losses, nor can you wait around until it pays.
10. Employee Injury Employees may face a dangerous environment as part of their jobs. Even the most safety-minded worker could be injured on the job. They face medical bills, lost hours and other harmful side effects of the accident, so small business insurance picks up the slack.