Small Business Insurance

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Every business – big or small – faces risks. Whether it's a customer slipping on a wet floor, a cyberattack threatening your data, or a sudden fire turning your inventory into ashes, there are a thousand ways a business can be ruined.

Small businesses are vulnerable carrying the risks large companies have while having fewer resources to face adversity.

Business Insurance is a Shield for Small Businesses

Business insurance shields you from losses that follow unfortunate events. 

It keeps you from fretting & adds to credibility by demonstrating to both customers and partners your readiness for any challenge. 

It can cover various situations such as property damage, liability claims, employee injuries, and even legal expenses. By having business insurance in place you not only protect your company but also safeguard your personal assets. What are BOP & General Liability Insurance?

Maryland Small Business

Small businesses are firms with fewer than 500 employees. Maryland has 634,622 small businesses as of 2022, making up 99.5% of the state’s total companies. Between March 2020 and March 2021, there was a net loss of 499 small businesses in Maryland. 1

As you can imagine some of those closures could have been prevented with proper business insurance. 

BlueSky Construction, a contracting company based in Silver Spring, had several employees injured on the job. Lacking proper workers' compensation insurance, they had to cover medical bills and lost wages directly from their operational budget. The strain made it difficult to complete projects on time ultimately leading to bankruptcy.

Popular Misconceptions 

Small Business Insurance is not too hard to understand. What's difficult is overcoming these major misconceptions:

Business Insurance MisconceptionsReality
I Don't Need Insurance My Business Is SmallAll businesses, regardless of size, face risks and can benefit from insurance.
My Personal Insurance Covers My Home BusinessHomeowner's insurance might not provide adequate coverage for home-based businesses
Insurance Is Too Expensive for My Budget95% of business owners pay *less than* $50 a month on General Liability
Workers' Compensation Isn't Necessary for My Small TeamMost states like Maryland require workers' compensation insurance even if you have just 1 employee
I Can Rely on Contracts to Cover LiabilityContracts do not fully protect your business in legal disputes.
I Don't Need Insurance Because I'm CarefulAccidents and unexpected events can still happen
I Can Always Buy InsuranceInsurance only works if you buy it before an incident

Business Insurance Required by Law?

In Maryland, Workers' Compensation Insurance is required for all "small businesses" but there are also certain professions that have legal requirements for insurance coverage. For instance, even if you're a limited HVACR contractor, the law mandates that you carry general liability and property damage insurance. So, it's necessary if you want to start installing or servicing HVACR systems. 

1 Small Business Administration (SBA), “2022 Small Business Profile: Maryland”

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