Please sign in as a member or guest below to access it.
Small-Business Insurance 101
Protect your hard work.
The Lone Star State is home to millions of small businesses. Each business is as unique as the next, whether it’s a multigenerational, family-owned storefront along Main Street or a small startup finding its footing in a spare bedroom.
Small-business owners have a million things on their mind at any given time. The right insurance coverage can give peace of mind — and financial protection against unforeseen events — allowing small-business owners to focus on serving customers and building their legacy.
Our small-business insurance 101 guide breaks down the most common types of coverage and key considerations that help Texan business owners protect their livelihoods.
Start Strong
Weaving insurance into your initial business plan can help safeguard you and your budding business against different risks. Every business faces unique risks, so insurance coverage should be tailored to individual needs.
“The risks of small business run the gamut,” says Toni Rogers, an Agent in Palestine. The risks small businesses face can depend on several different factors, ranging from industry to location.
Establishing a solid working relationship with your Agent is an important first step. “Let that be part of [your] business plan,” Rogers says. “Know what your needs are before you have them.”
Essential Coverage for Small Businesses
There are several different types of commercial insurance for small businesses, but these three policies are some of the most common types of coverage.
- Commercial Property can include coverage for buildings and business personal property, as well as loss of business income. Basic forms of this insurance type cover everything from explosion and lightning to vandalism and sprinkler leakage.
- Commercial General Liability can help financially shield your business from liability lawsuits, which can come from a variety of places — a customer slipping, falling, and breaking a leg on your business’ property or a customer getting food poisoning from something your business sells.
- Commercial Package gives you the best of both worlds by combining commercial property coverage, commercial general liability, and commercial inland marine coverage into a single policy.
Other Types of Small-Business Insurance
When building your insurance arsenal, consider these coverages too.
- Workers’ compensation provides lost wages and medical benefits to your employees who’ve been injured on the job.
- Commercial auto insurance is a must if you’re using a vehicle — or vehicles — for business purposes. This can range from vans for catering to trucks for landscaping.
- Commercial inland marine policies provide broad coverage with different subsets, including expanding coverage on certain items.
- Life insurance is essential for small-business owners who have an entire enterprise — no matter how big or small — on their shoulders.
Stay Relevant
Annual reviews are an important part of doing business because they can catch a few things you might be overlooking such as coverage gaps or liability risk.
Small-business owners should review their coverage with their Agent at least once a year — and especially as they hit major milestones.
For example, you’d want to reach out to your Agent when upgrading your business from a DBA to an LLC. “In that case, it could change their whole policy,” Rogers says.
Find the Right Fit
No two businesses are the same — industry, location, and number of employees are all factors that determine insurance needs. It’s not just about preparing for the worst-case scenario; it’s about building a strong foundation for future growth and success.
Securing the right insurance — and insurance Agent — is a proactive first step when it comes to launching a small business.
If you’re not sure where to start, your Texas Farm Bureau Insurance Agent can walk you through your small-business coverage options.
Explore a blueprint for success by learning more about these century-old Texas businesses.
More Good Reads
How the New and Improved Texas Farm Bureau Insurance App Can Help You in a Pinch
It’s kind of like having your Agent in your pocket.
A Parent’s Guide to College Visits (and 10 Questions You Should Ask)
College visits can be as important for parents as they are for students.
Protect your share of Texas’ 126 million acres of farmland.
First-Timer’s A to Z Guide to Income Tax Terms
No need to fear tax season. Here are all the forms and terms you need to know to make it through with flying colors.
What Needs an Inland Marine Policy?
Broaden your coverage and protect your valuables with this relatively inexpensive policy.
How Insurance Changes With Your Family: A Timeline
As your family grows, so do your insurance needs.