A recent Manta and Insureon survey revealed that fewer than 30% of small business owners have basic business insurance. Even fewer, just 6%, have business interruption insurance, and only a rare few (2%) have cyber insurance.
This lack of insurance can be a costly mistake. These policies are essential for the proper protection of a company in today’s marketplace. Here’s why.
Business owner’s policy: The basic coverage for a small business is a business owner’s policy (BOP). This typically provides general liability and commercial property coverage. The liability portion offers protection in case a customer is injured on your property or you cause damage to a customer’s property. Business and Industry Connection Magazine reports the average cost for a slip-and-fall injury is $20,000. An annual insurance premium is clearly the more affordable option.
Business interruption insurance: When disasters cause damage to a business, operations may be shut down for hours, days, or weeks. The resulting loss of income can be devastating to a company. How much revenue would you lose if you couldn’t open your doors for 10 days? Business interruption insurance replaces the income lost while your business is temporarily closed.
Cyber insurance: Modern businesses are typically dependent on online services in one form or another. This makes their business vulnerable to cybercrime. A study by Kaspersky found that the average cost of a cyber breach for a small business is $86,000. These costs can be avoided with an affordable cyber insurance policy.