Small Business Insurance
Insurance buys you freedom and peace of mind.
It is an essential part of business and personal financial planning. Because your insurer will pay on your behalf for covered incidents, it frees you from having to keep cash on hand. You can spend or invest that money in other places while still being protected.
Insurance protects your assets.
Insurance serves two purposes: protecting the insured from loss and liability. Insurance policies may cover:
- Loss only
- Liability only
- Both
Liability insurance protects you from claims if you harm others. Some liability insurance, such as car insurance, is mandated by law. While it protects others, it also keeps your assets safe. If someone makes a claim against you, the insurance pays before you do.
Loss insurance protects your property from loss or damage. The law does not mandate loss insurance. However, lenders may require it to lend you money. You make claims against loss insurance if your property is damaged or destroyed.
Liability coverage protects others from you, but it also insulates you.
Most people are familiar with liability coverage. It protects others if your actions (or sometimes inactions) cause them harm.
Liability insurance has several functions.
- It provides for a legal defense when claims occur.
- For covered losses, it protects you up to the limits of your coverage.
- It repairs or replaces covered physical property when damaged.
- Lenders, trade organizations, or federal, state, or local regulations may require it.
- It can be customized to meet your specific needs and level of risk.
The most familiar type of liability coverage is auto liability. However, it is not the only type of liability policy. You may find liability coverage in homeowners, renter’s, recreational vehicle, and boating policies.
Businesses may also need liability coverage. Examples include:
- General liability
- Malpractice insurance
- Professional liability
- Errors and omissions coverage
While liability coverage protects others, it can also shield you. It keeps some or all of your assets from being at risk if someone makes a claim against you. The protection is not absolute. It only covers certain losses. In addition, it will only cover you to your coverage limits. However, it helps protect you from most claims.
Loss coverage protects you.
Loss coverage is where you or a designated beneficiary will get financial benefits if a triggering event occurs.
You may be familiar with loss coverage from auto insurance. A loss auto policy pays for your damages, even if you are at fault. It is also known as:
- Collision
- Comprehensive
- Full-coverage
You can get many types of loss coverage:
- Comprehensive auto
- Life
- Property
- Supplemental
To decide whether to add loss coverage, ask the following questions:
- Is it more expensive to pay for insurance or to replace or repair it?
- Can I afford to replace it without insurance?
If you cannot afford replacement costs, insurance protects you from loss. In those cases, you want to have loss coverage. If you can afford replacement costs, you have to weigh your risk of loss against insurance premiums. Because loss insurance costs are based on the value of the property, it is usually a good choice for big-ticket items. Of course, your personal finances determine what you think of as a big-ticket item.
Loss coverage can also pay your beneficiaries. Life insurance is a specific type of loss coverage that pays other people. If you die, you choose people to receive your insurance payments. It is a way to protect your loved ones from the financial impact of your death.
The correct amount of insurance coverage is one key to financial security.
Having too little insurance can leave you vulnerable. Having too much insurance is a waste of money. We help you find the sweet spot for insurance coverage. The sweet spot is where your premiums and coverage are right for you.
We do not want you to be underinsured or over-insured. So, we strive to be the Goldilocks of insurance agencies. How do we find the policies that are “just right” for you? By spending time getting to know you.
- What risks do you have?
- What assets do you need to protect?
- What are your financial resources if you experience an emergency?
Our holistic approach means we find the policy that is just right for your actual level of risk, your risk tolerance, and your budget.
We tailor your insurance to fit your needs.
Not everyone has identical insurance needs. Even people with similar financial situations may have different requirements.
One of Stander & Company’s core commitments is relationship buildings. We take the time to get to know you. That is how we match you to the right products.
When you work with us, buying insurance is more of a conversation and less of a checklist.
In your first call, the agent will gain a general understanding of your business (or personal situation) and map out your needs. We will ask about your:
- Life today
- Goals
- Needs
- Risks
We may also talk about some things that seem unrelated to insurance. That is because many things that seem to have nothing to do with insurance can impact your premiums. You can expect questions about things like:
- Credit score
- History of loss
- Profession
- Education history
- Other property
There are two main categories of insurance coverage: business and personal.
We already talked about loss and liability. Now, we need to look at insurance categories.
You can insure things as an individual or as a business. Suppose you are not a business owner and you do not have any side-hustles. In that case, you only need personal insurance.
However, you need business insurance if you use your property in your job. That is true if you are a business owner. It also applies to people with side hustles.
Personal insurance covers things you own and use as an individual.
Personal insurance policies cover things like your car, home, and personal property. They also protect you from liability from actions you take in your personal life. You can insure yourself or your property.
Personal insurance needs vary from person to person. What property do you own? What activities do you do? Those questions help determine your insurance needs.
Types of personal insurance include:
- Auto
- Homeowners
- Life
- Short-Term Rentals through Airbnb or VRBO
- Flood
- Renters
- Motorcycle
- RV
- Boat
- ATV
- Umbrella
Personal insurance products are an essential part of your wealth management strategy. We are happy to work with your financial planners. Together, we can develop a program that protects you from loss and liability and dovetails with your wealth management plans.
Business insurance covers property you own or use as part of your business.
Business insurance covers things you do or things you own as part of your business. It protects your business assets from loss or liability. In that way, it is similar to personal insurance.
However, business insurance can provide additional coverage. It can also cover your behavior or the behavior of your employees. It can include coverage for mistakes (errors and omissions policies) or intentional wrongdoing (malpractice).
You may be legally required to have some business insurance. We can help you navigate state, local, and federal insurance regulations. We can also help you determine which products you need to protect your business assets.
We have also noticed an increase in the number of our clients who are required, by contract, to have specific types of insurance. As Amazon, FedEx, Whole Foods, and HEB increase the number of contractors, we expect to see even more delivery service partner (DSP) clients. If your contract requires you to have specific types of insurance, we can help you understand those requirements. Then, we help you find the coverage you need to work with them.
Some examples of business insurance include:
- Business Owners Policies (BOPS)
- General Liability
- Professional Liability
- Malpractice
- Errors and Omissions (E&O)
- Commercial Property
- Worker's Compensation
- Commercial Auto
- Commercial Truck
- Inland Marine
- Event/special event coverage
- Farm, Ranch, and Equine
- Group Health Plans
- Umbrella and excess liability
Your side hustles need insurance as well.
The gig economy complicates insurance. Many people use their personal property to make money in a side-hustle or other gigs. Some examples include:
- Driving a private vehicle for Uber/Lyft
- Doing deliveries for Postmates, Doordash, GrubHub, etc
- Renting personal property using AirBNB, VRBO, etc.
You might not think of that as business use, but does your insurer? Using your car or home to generate revenue using any consumer-to-consumer company can significantly affect your insurance. In extreme cases, it can result in denied coverage or canceled policies.
If you are using your personal property to earn money, please be sure to let us know. We will look at the options available to you. There may be add-ons to your current policy that can provide you with the proper coverage. In other instances, we may need to find a new policy that provides you with the protection you need. Either way, you want to find out before you need to make a claim.
The solution will depend on your situation. Regardless, we have the experience needed to help find the right policy for you.
You may need the additional protection of an umbrella policy.
We get quite a few questions about umbrella policies. Clients want to know what they are and if they need them.
Umbrella policies are additional liability policies that kick in if you exceed the policy limits on your primary insurance. They can also cover gaps in insurance. They can be broad or specific. For example, gap auto policies pay off auto loans if you have a loss and your loan is more than the car’s value.
Not everyone needs umbrella coverage. They are for people who are high-risk or likely targets for litigation. Do you:
If so, then you may need umbrella coverage.
- Have a large number of personal assets?
- Engage in risky activities?
- Own hazardous property?
Start the quote process today.
Getting the proper insurance coverage means matching your policies to your lifestyle. Once we know more about you, we can shop for the policies that meet your needs. We can help you find loss, liability, or mixed policies. So, contact us today to get started.
