Frequently Asked Questions

Small business owners have a lot going on and it’s easy to let something like Small Business Insurance drop to the bottom of the list. But it’s important to protect your business from claims and lawsuits that you can’t see coming.

You could be sued for just about anything, even if you haven’t made a mistake. If someone slips and falls in your shop or if a client thinks you didn’t do the job the way you said you would, you could find yourself facing a claim or lawsuit. Small Business Insurance can cover the cost, including the cost to defend yourself.

 Do you have any of the following?

• Own or lease business property
• Own or lease equipment or machinery
• Own or lease vehicles for business use
• Have customers or clients on your property
• Have employees
• Sell any type of service or product that could potentially cause damage or harm if misused or done incorrectly

If so, you need Small Business Insurance!!!

You may begin the process by contacting GMW Risk Advisory. We are trained, expert agents who have experience with nearly every type of company and market.

Simply talk to us about your business, including things such as the location, number of employees, and products or services involved. Be forthright and honest about your business, and don’t be afraid to ask questions – that is what we are here for.  We will then be able to thoroughly examine all aspects and potential risks involved with your business and provide you with several coverage options to help find the right policy for you. 

The cost of Small Business Insurance depends on the industry you are in, the size of your business, the type of insurance needed, and other factors.  

Factors such as:

• If your business is located in a high crime area
• Your location is at elevated risk of a natural disaster
• You are in an area experiencing high unemployment

Pricing also includes Workers’ Compensation estimates. This estimate considers:

• The number of employees you have
• The type of work they do (i.e. how dangerous it is)
• The industry and market you operate in

The higher the risk involved in running your business, the higher your premium will be.

This depends on the type of business you have. Most businesses will need General Liability Insurance, especially if you meet with clients face to face. If you offer professional advice, you should also have Professional Liability Insurance. If you have business equipment, like computers or tools, you may consider a BOP (Business Owner's Policy) which combines General Liability with coverage for your business property.  

Workers’ compensation covers medical expenses and a portion of lost wages for employees who become injured or sick while on the job. Coverage may also include employee physical therapy, mental health, and death benefits.

An employee only receives benefits if their injury relates to their job. Workers' Comp Insurance covers injuries caused by demanding physical labor, dangerous or wet conditions, or being exposed to hazardous chemicals or fumes.

Keep in mind that in nearly every state, Workers’ Compensation is on a no-fault system. This means that it doesn’t matter if you or your employee’s carelessness causes the injury or who is at fault. What matters is if the injury or sickness happened while the employee was working.  If an employee is injured while not doing work responsibilities, like while riding a motorcycle, Workers’ Compensation Insurance will not cover them.  

Liability Insurance protects your business from legal liability. Liability Insurance includes things like protection from “slip and fall” lawsuits, where a customer injures themselves while on your property due to dangerous conditions (such as a wet floor). It also protects against consumer lawsuits over injuries or damages caused by faulty products or services (otherwise known as Product Liability Coverage).

Liability insurance also protects business owners from lawsuits because of professional services rendered to your clients.  For instance, it can protect doctors and medical professionals from medical malpractice lawsuits in the event of a patient’s death or injury because of an unsuccessful or faulty procedure. This is also known as Medical Malpractice Insurance. Overall, Liability Insurance covers you and your employees from lawsuits over injuries or damages from incorrectly performed or failed services. This applies to any service-related industry: plumbing, general contracting, medicine, cosmetics, etc.

General Liability Insurance covers someone else’s claim of bodily injury, property damage or personal injury. This means if someone gets hurt at your place of business, or their property is damaged, you’re covered. You’re also covered for claims that you damaged someone’s reputation by slander or libel. 

Professional Liability Insurance covers your professional services or advice. This is sometimes called Errors and Omissions Insurance because it covers something you did that you shouldn’t have (an error) and something you should have done that you didn’t (an omission). Professional Liability Insurance protects for defense costs you even if the claim against you is found to be without merit.  

Commercial Property Insurance covers your business property and assets, which could include commercial buildings, storefront properties, and storage, should something unexpected happen.  It also includes things such as machinery, equipment, supplies, and inventory.

Your Commercial Property Insurance policy potentially covers anything tangible and necessary to the operation of your business lost in the event of a fire or natural disaster. 

In most cases, Personal Auto Insurance policies will not cover losses or damages sustained when the vehicle is being used for business purposes, even if it is your personal vehicle.

It makes sense, then, to make sure you have coverage for your vehicle while conducting business.  This includes driving for a rideshare company like Uber or Lyft, making deliveries, or simply visiting your clients as a salesperson (for example, a real estate agent). Having Commercial Auto Coverage will also cover you in case any employees use your vehicle and get into an accident as well.

This is a tricky question, and the answer is a solid “it depends.” 

Many Personal Homeowners’ Policies utterly prohibit the use of the home for business use and will not cover any equipment or supplies used for business within the home. This includes all physical files, computers, phone lines, shipping boxes, and all inventory.  If you primarily work out of your home office and provide a service/product or have customers or clients visit your home for any reason, you should have Commercial Property and Casualty Insurance.

Before your business suffers a loss or damage, you should have an insurance agent personally assigned to you. This will be the first call you make in the event you need to file a claim. Your insurance professional will take down all the information you provide about the incident, including your statement. The insurance company will then assign an adjuster to review the details of the claim to determine whether the loss is covered under your policy. Your agent should be your personal representative through the entire process – from claim through to payment. The agent’s primary goal will be to ensure that your claim is processed as quickly and seamlessly as possible, understanding that the most important objective is to minimize the effect of the damage or loss on your ability to continue to run your business.