While no one enjoys shopping for or paying for insurance, insurance is the most efficient way to finance a business’s risk with minimal costs. Furthermore, small businesses face specific challenges that larger corporations might not face when they decide on their annual insurance policy.
While larger corporations need master property policies with dozens of locations and warehouses, small businesses often have one location that they lease, not own. Larger corporations need an extensive general liability and umbrella insurance policy, but small businesses often only need $1,000,000 to $2,000,000 in limits. A larger company could absorb a few thousand dollars in losses or deductibles, while small businesses often have a tighter cash flow and need to minimize the risk of unexpected expenses.