Did you know that more than half million entrepreneurs start a business each month across the country? That’s stiff competition! Making the right insurance moves can mean the difference between a first-anniversary celebration and an inaugural-year flop. Whether you have one or a few hundred employees, sell products or offer services, or are headquartered from inside or outside your home, your insurance considerations as a small business owner are quite different from those of a consumer.
At Southern Colorado Insurance Center, we pride ourselves on being a resource center for small business owners. You work hard to provide for your family. We work hard to protect your work!
If you are planning to start a business in Colorado be sure to ask the following questions before you take the leap:
- Where will my business reside? Property insurance needs vary greatly depending on if you operate out of your home or from a leased or owned commercial building.
- How will I handle business transportation? Even if you use your personal car to run business errands, you may need to consider commercial vehicle insurance.
- Will my individual health plan still meet my needs after I’m a business owner? New risks associated with your business, and special provisions of the Affordable Care Act (ACA) make a small business health insurance check-up a must.
- How can owning a business affect my life insurance needs? Protecting the irreplaceable roles small business owners and key executives play in the business requires special life insurance considerations.
- How do I know if I need workers' compensation insurance? Contractors, part-time staff, interns. Make sure you understand who qualifies as a covered employee according to your state workers’ compensation laws.
Business Owner’s Policy (BOP): A Package Solution
A business owner’s policy (BOP) is a “package” product that typically includes property, business interruption/continuation and liability insurance. For many small businesses, purchasing a BOP can be a less costly option than buying individual policies. Southern Colorado Insurance Center is able to customize BOPs for specific types of businesses.
A home-based business or a company with only a few employees may start out with a BOP and then expand coverage as the company grows. However, a BOP typically does not include commercial auto insurance, workers’ compensation, health or disability insurance or liability insurance for claims of wrongful professional practices.
Tips for Small Business Insurance in Colorado
Insurance premiums are based on risk. Small business owners who take steps to minimize risk in the workplace can help keep employees and customers safe, and save money.
- Maintain a good driving record, and insist that employees do the same.
- Keep thorough and up-to-date records of business inventory, accounts receivable and equipment purchases. Keep one copy on-site and another in a different location.
- Have employees keep wallets and other personal items in a secure place. Keep business cash and other valuables in a safe.
- Maintain adequate lighting throughout your property.
- Keep electrical wiring, stairways, carpeting, flooring, elevators and escalators in good repair.
- Install a sprinkler system, smoke and fire alarms and adequate security devices.
- Whether you sell products, services or both, keep only a small amount of cash on-site.
- Be sure you and your employees know how to properly lift heavy objects, and how to use all necessary safety equipment.
At Southern Colorado Insurance Center we get to know you and your business so that we can confidently advise you not only on which policies to purchase, but also on risk management techniques. Thinking about starting a business? Contact us today!
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