Opening a new business is an exciting but risky endeavor. With time and money on the line, small business owners must protect their investments at all costs. Acquiring small business insurance in Hawaii enables new business owners to protect against lost income that results from personal injuries, property damage, and other liabilities.
No two businesses are the same, and commercial insurance needs can differ based on location, industry, and other factors. When shopping for small business insurance in Hawaii, it is important to ask questions to ensure that the policies purchased meet the business’s unique requirements.
1. Do I Need Small Business Insurance?
Small businesses always look for ways to reduce expenses and may be tempted to forgo insurance altogether. However, nearly every small business can benefit from acquiring business insurance, including:
- Restaurants
- E-commerce businesses
- Contractors
- Retail stores
Unforeseen events can occur anytime, and without coverage, a business owner could be stuck paying significant out-of-pocket expenses. In addition, some types of business insurance are required by law. For example, all U.S. states, except Texas, require companies to carry workers’ compensation insurance.
2. What Type of Coverage Do You Need for a Small Business?
It can be difficult to navigate the array of insurance options available for small businesses in Hawaii. When considering what policies a particular business needs, it is important to consider factors such as location, operations, and exposure to risk.
Some types of insurance carried by small businesses in Hawaii include:
- General Liability Insurance– GL insurance protects small business owners from third-party bodily injury and property damage, as well as product liability and advertising-related injury claims.
- Property Insurance– If a small business works out of a commercial building, has a storefront, or owns commercial property, the business owner may be liable for anything that occurs on the premises. Property insurance protects against on-site damage to equipment and the property itself.
3. What Is the Average Cost of Small Business Insurance?
One of the most common questions regarding small business insurance is related to cost. The cost of small business insurance is dependent on several factors, such as the type of coverage, specific terms of the policy, and amount of coverage. According to Forbes, small business insurance can range from $14 to $124 monthly.
4. What Is Covered by Small Business Insurance?
Small business insurance can cover a variety of issues that may arise during normal business operations. While small business owners may believe that they will never encounter certain types of problems, the reality is that many businesses experience insurable events.
According to an AdvisorSmith survey on small business claims, 3 in 4 (76.2%) small businesses reported having experienced an insurable event in 2020. Common events experienced by small businesses include:
- Theft
- Burglary
- Fraud
- Employee injury
- Cyberattacks
- Contract disputes
- Discrimination claims
- Property damage
- Auto accidents
- Product injury claims
- Customer injuries
5. Will There Be Gaps in My Insurance?
While going without small business insurance can open companies to costly liabilities, inadequate insurance coverage can also create coverage gaps. Working alongside an experienced insurance agent to create a comprehensive small business insurance package can help ensure that there are no gaps in insurance and that the business is well protected from a wide range of incidents.
Small business owners can also benefit from carrying commercial umbrella insurance, which provides extra protection if the costs of a covered incident exceed certain liability policy limits.
6. How Much Will My Small Business Insurance Policy Cover?
When shopping for small business insurance, business owners should consider the most cost-effective policy for their business. It is essential to look at the policy type of payment limit to determine the best option.
These payment limits include:
Aggregate Limit– This is the maximum amount the policy will pay in a year for all insurance claims combined.- Per-occurrence Limit– This is the maximum amount that a policyholder would receive for a single claim.
The limits on a particular insurance policy are based on the size of the business, the policyholder’s claims history, and the relative risk within the business’s industry. A knowledgeable insurance agent in Hawaii can provide guidance as to what policy limits are best suited for a particular small business.
Contact Atlas Insurance for Small Business Insurance
Having the right commercial insurance policies in place can give small business owners peace of mind and confidence to grow their businesses undisrupted. In the event of an unexpected incident, small business insurance can help Hawaii business owners make a swift recovery and avoid the extravagant out-of-pocket costs that often come with a lack of coverage.
To learn more about small business insurance in Hawaii or to request an insurance quote, contact our team of insurance specialists at Atlas Insurance Agency by calling (808) 400-6680.