When we hear the phrase “mom & pop business,” most of us think of the storefronts that line our downtown streets. We imagine small dining and retail establishments being run by husband and wife teams, with maybe their kids helping out after school.
While that visual does describe a mom & pop business, the category is actually much broader. Really, a mom & pop business is any small, family owned and operated business. These businesses might offer products, food, or services. They serve the local community, contribute to the economy, sponsor youth sports teams, and usually place a high priority on customer service.
Support for small, local businesses has been on the rise in recent years. If you are the proud owner of one, it’s great to feel like your neighbors are here to protect your interests. But that’s not the most important protection your business needs. Small business owners simply cannot afford to operate without effective insurance policies.
Small Business Insurance in PA
Many start-up businesses put off buying insurance during the early days. They see it as an expense without tangible returns. When a business is first getting started, it seems like every penny spent needs to drive revenue in some way. Unfortunately, this is not the best way to look at certain business expenses. Yes, insurance is an expense that doesn’t directly yield revenue back to the business. What it does do, however, is protect the owner from losing their business and personal assets when something goes wrong.
A few examples of why a small business needs insurance from the very beginning include:
- A few days after your bakery grand opening, someone claims they got food poisoning from your cupcake.
- You just signed on several houses in a neighborhood to start your lawn service, and your mower kicks a stone through a large bay window.
- Someone slips on those shiny new floors of your salon, restaurant, or boutique store and sues you for their broken ankle.
- You’re still getting used to your fancy auto detailing equipment when you accidentally ding your customer’s mint condition classic car.
These misfortunes can bankrupt a business and its owner if they don’t have insurance. Small business insurance can be very affordable. When sales are lower during the first few years, insurance policies are priced accordingly. Once revenues increase, premiums will go up, but the coverage will also get more comprehensive.
What Insurance does My Small Business Need?
Each small business is different, so it’s always best to review your specific needs with an experienced, local insurance agent. Although there are plenty of national agencies out there that advertise low premiums, a local agent is usually better positioned to help an owner determine exactly the right coverage at the most affordable premium.
Local insurance agents take time to get to know your business. They also understand your local area better, so they know how your liabilities might shift based on location, typical customer profile, or workforce. They have the benefit of inside knowledge that no one in a far-off call center can match.
The most common small business insurance needs include:
- Liability Coverage – this is your basic lawsuit protection. Whether someone gets hurt on your property or alleges that your product or service caused harm, liability insurance will cover legal and medical costs.
- Commercial Property Insurance – this coverage is for your physical property. It will help you repair or replace property and assets damaged or destroyed by theft, vandalism, storms, or fire.
- Workers Compensation Insurance – this coverage is required if you have employees. It covers medical and legal expenses for work-related injuries.
As your business and its assets grow, you may want to add an umbrella policy, which provides extended coverage beyond the standard limits and exclusions. For company vehicles, you’ll need to add business auto insurance. Depending on your industry, business interruption coverage and cyber insurance policies may also be worthwhile.
Because mom & pop businesses tend to be a significant part of the owners’ lives, it’s also vital to tell your agent where you keep all of your business assets. Many small business owners keep company equipment at home, in the garage, or somewhere else off-site. If it’s outside of your physical business, there is a good chance it’s not covered. Keep your agent informed about how you run your business so that they can help you protect it.
Protect Your Legacy with Small Business Insurance
The amazing thing about mom & pop businesses is that they are often intended to provide for future generations. They may not be massive wealth builders, but they do establish a legacy for your family and your local community. These businesses really are the backbone of local economies and entire families, so it’s crucial to think about their long-term viability.
If you have a small business, or you’re in the early stages of starting one, contact us. We have helped countless small business owners switch out of inappropriate coverage, consider issues they aren’t yet aware of, and make smart decisions about their insurance policies. We are serious about supporting small businesses as patrons and networking partners. Smyrl Insurance educates, nurtures, and empowers small business owners through insurance to protect their assets and legacy for long-term success. We serve clients for commercial property, liability, workers compensation, auto, and other insurance needs in Hatfield, Lansdale, Souderton, Harleysville, and throughout Montgomery County, Pennsylvania.
