Small Business Smarts: The Role of Business Insurance
Part of a series | Small Business Smarts
For small businesses, the right insurance coverage is critical to their business operations. In this episode of Small Business Smarts, Victoria Jordan, founder and executive creative director of Pureworks, LLC., dives into four business insurance types: mandatory insurance coverage, commercial auto insurance, commercial property insurance and specialized insurance. She explains what small business owners need to know to protect their people and their passion.
"One of the things that makes my business a success is knowing when to reach out to licensed experts, especially when it comes to topics like business insurance," said Jordan.
Navigating the business insurance landscape can be daunting for small business owners. Below are four key types of business insurance.
4 key types of business insurance
1. Mandatory insurance coverage: If you have employees, securing workers' compensation insurance is essential. Additionally, you may need unemployment insurance and, depending on your state, disability insurance.
2. Commercial auto insurance: If your business relies on vehicles for deliveries or services, consider obtaining commercial auto insurance to protect against possible liabilities.
3. Commercial property insurance: For businesses with a physical location, like an office or factory, landlords often require commercial property insurance. This insurance covers damages to the building, equipment, and inventory resulting from events such as fire or theft.
4. Specialized insurance: Businesses that handle sensitive customer data or provide legal or medical services might need specialized insurance, such as cyber liability or professional liability insurance, to comply with industry regulations.
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Partnering for success
The complexities of insurance can be challenging, which is why having a knowledgeable partner is vital. ADP's affiliate, Automatic Data Processing Insurance Agency (ADPIA), can assist in understanding changing regulations and managing compliance requirements. This can be a significant advantage for small business owners. Knowing which types of insurance to consider and having the right support can help safeguard your business and provide peace of mind as you navigate your entrepreneurial journey.
To explore insurance options further, visit insurance.adp.com or contact an ADPIA agent to discuss the best coverage for your specific business needs.
Video transcript
The speaker is Victoria Jordan, founder and executive creative director of Pureworks, LLC.
Only 53% of small business owners talk to an advisor when deciding what business insurance they need. From ice cream shops to design studios, to software developers, there are required and optional types of business insurance, and there are some that are specific to different industries or business structures.
I'm Victoria Jordan and I own a small creative studio. One of the things that makes my business a success is knowing when to reach out to licensed experts, especially when it comes to topics like business insurance. Still, I thought it might be helpful to share a few things that I've learned while researching for my small business. If you have employees, you may need to secure unemployment insurance, workers compensation, and, in certain states, disability insurance.
Some payroll providers, like ADP, provide administrative solutions that can help businesses streamline workers comp premium payments by syncing with your payroll cycle. Instead of paying one large payment upfront for your coverage. If your business uses vehicles to deliver things or anything else, then you should consider commercial auto insurance. If you have a physical space, a factory, or an office, there are some landlords that are going to require you to have commercial property insurance, which covers damage to the building, to your equipment, and to your inventory.
If there is a fire or a theft, if your business has access to sensitive customer data, or you provide legal or medical services, these are specialized areas and you're going to have some extra work to do. You might need things like cyber liability or professional liability insurance in order to comply with regulations. These are just a few of the things to think about when it comes to business insurance.
What's really important is having a partner who can help you figure out exactly what you need. A partner like ADP's affiliate, Automatic Data Processing Insurance Agency, or ADPIA, can help you stay informed about changing regulations and manage compliance requirements, which is a really big advantage when you're a small business owner.
Check out insurance.adp.com for a deeper dive, or contact an ADPIA agent to discuss what insurance would be right for your business.
