Half a million small businesses are currently operating in Minnesota. More than 5,000 of these businesses can be found in Brooklyn Park. While manufacturing and retail businesses dominate the landscape, companies in a wide range of industries are thriving in this city.
If you are among the many entrepreneurs who have set up a small business in Brooklyn Park, you will want to be sure to protect it with a suitable business insurance plan. A local independent insurance agent can help you identify the risks that are unique to your particular business and can offer appropriate coverage recommendations.
Liability Insurance for Small Businesses in Brooklyn Park
We live in a litigious society. Liability insurance is therefore one of the most important coverages offered by commercial insurance providers. It is designed to cover court costs, legal fees, and damages if your company is sued.
Every business insurance policy includes commercial general liability insurance (“CGL”). This covers your company against many common risks that businesses face. In particular, it is designed to cover third-party injuries, illnesses, and property damage. It includes two major portions:
- Premises liability insurance: To cover damage that occurs on your business property.
- Product liability insurance: To cover damage that occurs because of a product your company sells, produces, or promotes.
Many businesses need additional liability insurance products to be fully covered. A company with a fleet of vehicles will need commercial vehicle liability insurance; a business that deals with toxic chemicals and hazardous waste will want to invest in pollution insurance; and a sole proprietor in a professional position may want to consider errors and omissions insurance.
A local independent insurance agent can go over your various liability insurance options and can help you determine which are right for your particular business.
Cybercrime Insurance for Brooklyn Park Small Businesses
One liability product in particular may be beneficial to most businesses. Cyberliability insurance is a relatively new product that was introduced to meet the growing needs of businesses affected by cybercrime.
- Number of identity theft complaints in Minnesota per year: 3,229
- Ranked 38th highest for identity theft complaints in the US
- Only 22% of businesses have a cyber/data breach response plan
If your business stores customer data such as credit card numbers, addresses, birth dates and other personal data, hackers may access this information to perpetrate identity theft and fraud. Your business can be held liable for covering the resultant damages as well as for providing credit monitoring to all potentially affected customers.
Firewalls and passwords are a good start, but sophisticated hackers are always finding ways around security. If your Brooklyn Park business is at risk, be sure to talk to your independent agent to learn more about how cybercrime insurance can benefit you.
Property Insurance for Small Businesses in Brooklyn Park, MN
Commercial property insurance is included in all business insurance policies. It is designed cover your business-owned property, including computers, tools and machinery, display cases, merchandise and inventory, office furnishings, and more.
In Brooklyn Park, business property is most at risk for damage caused by accidental fires, property crimes, and severe weather events.
- Number of federally declared disasters in MN since 1953: 60
- Most common reasons for declared disasters: Flood and Severe Storms
A major disaster can lead to widespread, all-encompassing damage. That is why it is so important that you have business property insurance at levels high enough to enable you to replace lost or damaged items without experiencing large financial losses.
Some Brooklyn Park businesses are prone to flooding. However, flood damage coverage is excluded from most commercial insurance policies. Fortunately, your independent insurance agent can help you secure a commercial flood insurance policy through the NFIP. Talk to your agent for more information.
Business Interruption Insurance for Brooklyn Park Businesses
When it comes to natural disasters, business property damage isn’t the only thing you need to worry about. In some cases, severe damage can require that you shut down business operations for a long time while you repair and rebuild. While your business is closed, it is unable to generate revenue, and this can be financially devastating.
- Gross domestic product (GDP) for US: 2.2%
- Gross state product (GSP) for Minnesota: 2.8%
- The GSP is 0.6% greater than the GDP
Business interruption insurance provides your business with a continuation of income while it is closed for a long period due to forces beyond your control. This insurance enables you to continue paying employee salaries and monthly expenses, such as loan payments, so that your business can stay afloat until you can reopen your doors.
Workers' Compensation for Brooklyn Park Businesses
It is unfortunate, but sometimes employees are injured on the job. Whether it is a physical injury such as a broken bone, or your employee becomes ill, such as from breathing noxious fumes, your business is responsible for covering the resultant costs. Failure to do so could put you on the wrong end of a liability lawsuit.
That is where workers’ compensation insurance steps in. Often referred to as “workman’s comp,” this insurance is designed to cover your employees’ medical treatment and lost wages, and can even pay death benefits to surviving family members if a workplace injury proves fatal.
Most businesses in Minnesota are required to have workers’ compensation insurance. There are, however, a few exceptions, including sole proprietors and family farms. You have the option of purchasing your coverage through a commercial provider or, if approved, your business may self-insure.
Employee Benefits for Small Businesses in Brooklyn Park
If your Brooklyn Park-based business employs at least 50 full-time workers, you are required to provide them with subsidized health insurance. Even if you have fewer than 50 employees, you may want to consider offering employee life insurance and health care coverage in order to be a more attractive employer.
- Average amount spent on healthcare coverage by MN businesses: $1,064,684
- Ranked 37th for highest medical insurance costs in the US
- Average annual cost of health care in MN: $5,505/person or $14,820/family
Healthcare coverage can be expensive, but a local independent agent can help you find affordable coverage. With so many different policy types and options to choose from, you may benefit from the guidance that these agents can provide.
Why Talk to an Independent Agent?
With so many options and coverage types at your disposal, building a comprehensive commercial insurance plan for your Brooklyn Park business can be tricky. That is why many business owners opt to work with an independent insurance agent.
A local independent agent can help you identify the various risks your company has, and can help you be certain that you do not have any accidental coverage gaps. Because they work with several different insurance companies, independent agents in Brooklyn Park can help you find the best and most affordable business insurance to meet your company’s specific needs.
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