The definition of a small business is one that—to many business owners—doesn’t actually seem very small. A small business is defined by having fewer than 500 employees and less than $5 million in revenue each year. Along with the Internet, a new type of small business has become more prevalent, and that is the microbusiness. A microbusiness is generally defined as one with fewer than five employees that takes a very small capital investment to get started (generally less than $15,000).
If you have a microbusiness either operated out of your home or another location, you may think that your business is too small to worry about insurance. However, the size of your business does not necessarily reduce your risk of suffering damages due to liabilities and loss of property, nor does it make your property and future finances any less important to protect.
The types of commercial insurance that a microbusiness needs will vary based on industry, location and what kind of property loss and perils it could face. If you operate a microbusiness and need to shop for insurance, here are a few things to keep in mind:
· If you operate your microbusiness from home, your personal home insurance or renter’s insurance policy will not cover damages to property or liability claims unless the policy has a special endorsement to that effect.
· Every business has potential liabilities. From consultants to virtual assistants to designers, you could have business-related visitors to your home, such as delivery people, who could get hurt on the premises. Or, your work might have the potential to cause damage to a client, which could prompt a lawsuit.
· If you use your personal vehicle to run errands for your business or to transport business property from one location to another, then you need commercial auto insurance.
· When you run a microbusiness, your finances may be tighter than a business with higher revenues. This means you can ill afford a temporary business interruption or other disastrous event such as cyber theft. Insurance can offer you an appropriate level of protection against these threats.
If you are interested in learning about all the ways insurance can help protect your business and keep it running for years to come, give us a call at 800-220-5582. One of our experienced professionals will help you design a Michigan business insurance portfolio specifically tailored to the needs of your microbusiness.