As the owner of a farm shop, you understand the adversities and risks that come with running a small business. Without a doubt, you've worked long hours to build your store and are likely reaping the benefits of your efforts. What if a disaster came along and threatened to close your doors? While nobody ever expects a calamity to occur, they happen all the time.
Are you adequately covered? An independent insurance agent can assist you in evaluating the exposures you face and come up with an insurance plan that is the right fit for your farm shop.
Why Do You Need Business Insurance?
Any number of mishaps can place your business in jeopardy. You need a robust risk-management plan that covers all the different risks you might encounter. What are some types of losses you could be confronted with that can be covered by business insurance?
- A severe storm damages your building
- Water damage causes mold growth
- A customer injures themselves by slipping and falling
- An employee cuts themselves setting up a display
It’s important to be well-prepared for all of these possible scenarios, no matter how unlikely they are.
What Kind of Business Insurance Do You Need for Your Farm Shop?
Businesses are complex entities that require various types of protection. No two businesses are alike. Depending on factors like the size of your establishment, number of employees, and type of operations, coverage needs will vary.
There are several coverages you will need no matter what.
Commercial property insurance
No business should be without property insurance. It protects you from damage to your building and its contents if a calamity were to occur. Your policy protects you from natural disasters, vandalism, fires, and other disasters. Not carrying enough coverage can put your business at risk for a huge financial loss.
Basic property insurance doesn’t include floods or earthquakes, so if you live in an area that is at high risk for these events, ask an independent insurance agent about added coverage.
Commercial liability insurance
Liability insurance is an essential form of coverage for businesses as it protects you when you are found responsible for damages to another party. Liability insurance covers three main parts:
- Coverage A: Bodily injury and property damage liability
- Coverage B: Personal and advertising injury
- Coverage C: Medical payments
What does liability cover? Here are a couple of examples:
- A customer falls in your store, breaks their arm and sues you
- You make a false claim about a competitor on social media
- An employee damages a customer's property
- You make defamatory remarks about a competing business and they lose customers
The average lawsuit from a liability claim is $75,000. That's a lot of money.
Business owners policy
The most economical solution for broad coverage is in the form of a business owners policy (BOP). With a BOP, multiple coverages are combined into one policy. Generally, property and liability insurance are included along with any other policies you may need.
Do You Need Any Additional Coverage?
Insurance is not a one-size-fits all solution. Depending on your business, you may want to consider some of the following policies:
Is your farm shop prepared for a catastrophe that could completely stop revenue? Business interruption insurance can prevent total financial ruin and provide income and money for fixed expenses while your business is shut down.
If you have employees working for your farm shop, a workers' compensation insurance policy protects you if an employee is injured on the job. The policy provides medical costs and some lost wages if an employee hurts themselves at work. Check with your state for laws regarding workers' comp coverage, as the requirements differ between states.
Business crime insurance protects your business against employee dishonesty, theft, burglary, and other business crimes. This policy would cover losses like an employee stealing cash from the register or forging checks.
Commercial umbrella liability
Even though you may have general liability insurance, the policy has certain limits. An umbrella policy fills in the gaps and provides greater liability coverage for your business.
How Much Does Business Insurance Cost?
Because no two businesses are alike, the cost of insurance premiums can vary between establishments. The size of the business, the number of employees, and additional items all factor into price. The cost of insurance is a top priority for small business owners, and working with someone who understands that is crucial.
An independent insurance agent can help you explore every possible option and get you the most cost-effective insurance for your needs.
The Benefits of an Independent Insurance Agent
Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility, and competitive pricing while working entirely for you. As your needs change, they'll be there to help you adjust your coverage, up or down, to make sure you're properly protected without overpaying.
TrustedChoice.com Article | Reviewed by Jeffrey Green
©2020, Consumer Agent Portal, LLC. All rights reserved.
iii.org, Insurance Journal