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Small Business Insurance

As your small business begins to grow, as will your entrepreneurial enthusiasm, and though manifesting your ideas into an empire is extremely exciting– it can also be risky. As your business begins to grow– garnishing more traffic, revenue streams, and overall success, it also becomes more vulnerable. And, understanding the multiplicity of legalities a small business owner must take to protect their business from these threats is very important. The Southeast Colorado SBDC understands it can be a daunting task from small business owners to fully realize all the different legal structures involved, so don’t worry… we are here to help!

Why do I need insurance for my business?

Small business owners need business insurance because it helps cover the costs associated with property damage and liability claims. Without business insurance, small business owners may have to pay out-of -pocket for costly damages and legal claims against their company. Depending on the scenario, this could be devastating for your business.

As a business owner, you may be asking yourself, “Is business insurance required.” And, the answer is no. There are many different types of business insurance options and not all are required for operation. When facing catastrophic natural disasters, insurance is not required, although it would be mighty helpful, but in other situations, insurance may be a necessity. In almost every state a certain amount of insurance must be held for employees operating under your business, such as worker’s compensation insurance. Covered risks under a business insurance policy include theft, injured workers lost wages, and much more. If your business does not have insurance– these costs could come out of pocket.

What are the basic insurance needs for most businesses?

Business Owner’s Policy

a BOP combines business property, liability, and income insurance into one policy.

Business Property

sometimes called commercial property, helps protect the physical location of your business and business assets.

Business Liability

sometimes called commercial liability, helps cover the costs of liability claims made against your business.

Unemployment insurance

covers employees who are unable to legally work any longer, due to no fault of their own.

Business Property

sometimes called commercial property, helps protect the physical location of your business and business assets.

Business Income Insurance

helps replace lost income when your business can’t operate due to a covered loss.

Where can I find an insurance company to cover my business in Southeast Colorado?

State Farm Insurance
321 Colorado Ave,
La Junta, Colorado, 81050

Farmers Insurance
319 Sante Fe Ave
La Junta, Colorado, 81050

American Family Insurance
111 W. 3rd St,
La Junta, Colorado, 81050

Allstate Insurance
116 W. 3rd St,
La Junta, Colorado, 81050

Otero County Insurance
117 W. 3rd St,
La Junta, Colorado 81050

Van Dyke Insurance Agency, Inc.
1006 Elm Ave, Rocky Ford, Colorado, 81067
(719)254-7878 Fax: (719)254-3027

Farmers Union Insurance
15 E. 3rd St,
La Junta, Colorado, 81050

Careers with specific insurance laws and policies:

(Provided by the Hartford Financial Services Group, Inc.):

Insurance Needs for Landscaping and Arborists:

Landscapists and Arborists should look into buying Business Income Extension for Off-Premises Operations. This coverage can help replace income lost if your business can’t operate because equipment was damaged at the job site. Landscapers might also consider adding Herbicide/Pesticide Insurance coverage. This can help cover costs resulting from pollution caused by using pesticide or herbicide.

Insurance Needs for Real Estate Businesses:

Real estate businesses will most likely need commercial auto insurance. This coverage can help cover the costs if an employee causes an accident while driving for work. Real estate agencies can also benefit from employment practices liability (EPL) and employee benefits liability (EBL) insurance.

Insurance Needs for Restaurants:

Restaurants and other food service businesses can help protect themselves by adding Liquor Liability and Temperature Change insurance. Restaurants that serve liquor are at an increased risk. If a patron who was served alcohol causes a fight or accident, the restaurant could be held liable. Liquor Liability helps cover the costs of a claim involving the sale of liquor at a restaurant. Temperature Change coverage helps protect restaurants if refrigerator units break down and cause spoilage. If this happens, Temperature Change coverage can help pay for the cost to replace the stock.

Insurance Needs for Retail Businesses:

Retail businesses can benefit from adding Business Income from Dependent Properties and Franchise Upgrade coverage. Business Income from Dependent Properties helps cover lost business if a third party your business depends on causes your store to lose business. For example, you may lose business if a manufacturer of goods you sell unexpectedly shuts down and is unable to deliver the items you ordered. Depending on the reason for shutdown, this type of Business Income Dependent Properties coverage can help cover the income you lost as a result.

Franchise Upgrade coverage can help pay the costs to upgrade a retail store to meet franchise standards after a covered accident.

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Do you have more questions about business insurance?

 The Southeast Colorado SBDC consultant team consists of six members, each specializing in distinct realms of business and education. Get in touch with a member of our team today and get more information about successfully marketing your business!

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