Whether you run a small donut shop or a digital advertising agency in Florida, having the right small business insurance is important for your business. You should determine your coverage based on the size and industry of your business. Here are some common types of small business insurance:
Florida Liability Insurance
General liability insurance covers accidental bodily injury and property damage your small business causes to others. It also covers claims for copyright infringement, libel, and slander. General liability insurance also pays for legal expenses, such as attorneys' fees, settlements, and judgments.
Florida Professional Liability Insurance
Professional liability insurance covers your small business if someone alleges you made a mistake in your professional services, even if the claim is unfounded. For example, if a customer claims that your tax preparation services caused them a financial loss, professional liability insurance will pay the costs of the lawsuit.
Professional liability insurance is also known as malpractice insurance.
Florida Workers' Compensation Insurance
Florida workers' compensation insurance covers medical expenses, lost wages, and other costs when employees become injured or ill in the course of their work. People who need workers' compensation insurance in Florida include:
Agricultural employers who employ six full-time employees and/or twelve seasonal employees who work at least 30 days during the season, but not more than a total of 45 days during the entire calendar year. Construction employers who have one or more employees, including a business owner or corporate officer, who is a member of a limited liability company. Those with four or more employees, including a business owner who is a corporate officer or LLC member.
Other Business Insurance in Florida
To cover the risks your small business faces in Florida, you’ll likely need to add other types of small business insurance, such as coverage for your business assets, like your building, signs, inventory, and office equipment.
A good place to start is with a Business Owners Policy (BOP). A BOP bundles general liability, business interruption, and commercial property insurance together. It's usually cheaper to buy a BOP than to buy each coverage type separately. A BOP covers:
Business interruption insurance: If your business can't open due to a covered issue, such as weather damage, business interruption insurance covers loss of business income. It also covers relocation costs if you need to move to a temporary location. Commercial property insurance: Covers your small business's physical property against issues like theft and fire damage. Commercial property insurance covers business property, such as furniture, tools, equipment, business records, and inventory.
You can expand your BOP by adding additional coverage as needed. Other types of business insurance to consider include:
Builders Risk Insurance. This covers property for buildings and structures under construction. Builders Risk Insurance is also known as “Construction Process Insurance.” Commercial Auto Insurance: If you drive a car for work, you need commercial auto insurance. Personal auto insurance doesn't cover accidents that occur while you're on the job. Commercial Umbrella Insurance: This coverage kicks in if you've maxed out your general liability limits. For example, if a small business is sued for $800,000 and your general liability limits are $500,000, your commercial umbrella insurance will cover the shortfall. Cyber Liability Insurance: This covers data breaches and cyber attacks. Cyber liability insurance pays for expenses like investigative services, data recovery, and legal costs. Directors and Officers (D&O) Insurance: This liability insurance covers decisions made by your company's directors, officers, and directors. If someone sues your company, your directors and officers insurance can cover legal costs. Inland Marine Insurance. If your company transports materials or products overland by truck or train, inland marine insurance covers property that is damaged, lost, or stolen. Medical malpractice insurance: This covers claims that result in the death or injury of a patient, including medication errors. Types of professionals who need medical malpractice insurance include doctors, dentists, optometrists, nurses, counselors, acupuncturists, and therapists. Product liability insurance. This covers your company if one of your company's products injures someone else or damages someone's property. Product liability insurance pays for expenses that result from a claim or lawsuit. Technology negligence insurance: This covers your technology business from claims from customers. Types of small businesses that may need technology negligence insurance include computer consultants, software developers, website developers, and IT contractors.
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