Half a million small businesses are currently operating in Minnesota, and more than 7,200 of these businesses can be found in the affluent city of Eden Prairie. Businesses in the manufacturing, professional, scientific, and technical services industries do especially well in this city, but companies in a wide range of other industries can also thrive here.
If you are among the many entrepreneurs who have started a business in Eden Prairie, you will want to be sure to protect your investment with a comprehensive commercial insurance plan. A local independent insurance agent can help you identify the risks your company faces and can recommend the appropriate coverage solutions to cover against those hazards.
Liability Insurance for Small Business in Eden Prairie
In our litigious society, commercial liability insurance is a crucial part of your business insurance policy. It is designed to cover associated court costs, legal fees, and damages if your company is sued in a liability lawsuit.
Every business insurance policy includes commercial general liability insurance (CGL). This covers your company against many of the liability risks most businesses face. It includes two major components:
- Premises liability insurance: This can cover third-party injuries and damage that occur on your business property
- Product liability insurance: This can cover third-party injuries and damage caused by a product your company produces, sells, or promotes.
Many businesses need to buy additional liability insurance products in order to be fully covered. There are several commercial liability products available. Some examples include:
- Commercial vehicle liability insurance: This is required if your business owns a vehicle or vehicles.
- Pollution liability insurance: This is important if your business uses toxic substances or generates hazardous waste, because an accident can pollute the environment.
- Professional liability insurance: This covers individuals in professional positions if they make a mistake or error in judgement that causes third-party damage.
- Employment practices liability insurance: This covers your business against charges of perceived harassment, discrimination, or wrongful termination filed by employees.
An independent agent can help you review your many liability insurance options and can help you determine which are right for your Eden Prairie business.
Cybercrime Insurance for Eden Prairie Small Businesses
One liability product in particular merits special attention. Cyber-liability insurance is a relatively new liability product that was created 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 electronically stores your customers’ personal and financial data, hackers may be able to access this information and then use it to commit identity theft and fraud. Companies that experience a data breach can be held liable for covering the resultant damages as well as for providing credit monitoring to all potentially affected customers. This can be extremely costly.
Sophisticated hackers are always finding ways to get around firewalls and other data security. If your Eden Prairie business is at risk, be sure to ask your independent agent for more information about how cyber-liability insurance can be of benefit to you.
Property Insurance for Small Businesses in Eden Prairie, MN
Commercial property insurance is included in all business insurance policies. It is designed cover your business assets, including office furnishings, inventory, tools and machinery, computers, outdoor signs, and more.
- Number of federally declared disasters in MN since 1953: 60
- Most common reasons for declared disasters: Floods and Severe Storms
A major disaster, like the F-4 twister that touched down just 3.4 miles from the Eden Prairie city center in 1965, can cause widespread, all-encompassing damage. It is therefore important that your business property coverage levels are high enough to enable you to replace lost or damaged items without experiencing large financial losses.
Some Eden Prairie businesses are prone to damage caused by flash flooding. However, flood damage is rarely covered by business insurance policies. Fortunately, your local independent agent can help you secure a commercial flood insurance policy through the NFIP.
Business Interruption Insurance for Eden Prairie Businesses
When it comes to natural disasters, property damage isn’t the only exposure business owners need to be concerned with. In some cases, disasters can force you to close down your business for a long time while repairs are made. When your business is closed, it is unable to generate revenue, and this is bad for your business as well as for the local economy.
- Gross domestic product (GDP) for the US: 2.2%
- Gross state product (GSP) for Minnesota: 2.8%
- The GSP is 0.6% greater than the GDP
Business interruption insurance provides a continuation of income when your business is forced to be closed because of a disaster. This insurance enables you to continue to pay employee salaries and monthly expenses so that your company can stay afloat until you can resume normal business operations.
Workers' Compensation for Eden Prairie Businesses
It is an unfortunate fact that workers are sometimes injured on the job. Whether your employees suffer physical injuries, such as herniated discs, or become ill from exposure to toxic materials, your business is responsible for covering the associated costs. Failure to do so could result in your company facing a liability lawsuit.
That is why workers’ compensation insurance is beneficial to employees and employers alike. Often referred to as “workman’s comp,” this insurance is designed to cover your employees’ medical treatment and lost wages if they are hurt while at work. It can even pay death benefits to surviving family members in the unfortunate event of a fatality.
Most businesses in Minnesota are required to carry workers’ compensation insurance. Exceptions are made for sole proprietors, partners, family farm operations and a few other cases. An independent agent can help you purchase coverage through a commercial provider or, if you are approved, your business may choose to self-insure.
Employee Benefits for Small Businesses in Eden Prairie
If your Eden Prairie business has at least 50 full-time employees, you are required to provide them with subsidized health insurance coverage. Even if your business has fewer than 50 employees, you may want to consider investing in employee benefits like life insurance and healthcare coverage in order to be a more competitive 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
Health insurance is expensive, but a local independent agent can help you find the most affordable, suitable coverage. With so many different policy types for you to choose from, you may benefit from receiving guidance from a local insurance professional.
Why Work with an Independent Agent?
There are many insurance products and options available for you to choose from. This can make building a comprehensive commercial insurance plan for your company complicated. Many business owners in Eden Prairie therefore opt to work with an independent insurance agent.
These agents can help to prevent accidental coverage gaps by identifying the various risks your business is exposed to, and recommending the right coverage types to cover against them. They can then shop around to find the best and most affordable policies. Find an agent in or near Eden Prairie to get started.
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