Consider These 6 Insurance Types for Your Small Business in Ohio

If you’re thinking about starting a business, Ohio is a great place to do so.

11:36 16 June 2021

According to Forbes, it’s the best state in America to launch a startup thanks to its maturing entrepreneurial ecosystem. And its population is large enough that no matter what your niche is, you will be able to find customers.

 

But before you can start thinking about products and customers, you need to make sure your business is well-protected. And with Ohio business insurance, you can get the right coverage that will protect you, your business, and your employees.

 

Let’s take a closer look at some insurance types you can get for your small business in Ohio.

 

Worker’s compensation

 

The chances of an employee getting hurt in the workplace differ from profession to profession, but workplace accidents can and do happen in almost every field. In America, a workplace injury occurs once every 7 seconds, and it’s the employer’s responsibility to compensate the injured employee.

 

This is why most employers have worker’s compensation insurance, which comes in handy when a worker gets injured on the job. If you don’t have this type of insurance, not only will you have to pay for all employee medical expenses out of your pocket, but you can also get fines or even criminal penalties.

 

Worker’s compensation insurance covers all medical expenses for the injured employee and covers their wages while they’re recovering. And if the injured worker decides to sue the company because they sustained a work-related injury, worker’s compensation insurance will cover the cost of the lawsuit.

 

Unemployment insurance

 

Just like the previous example, this type of insurance is required by the government and its name is pretty self-explanatory. If one of your employees loses their job, this insurance will provide them with some security.

 

However, unemployment insurance can’t be purchased from an insurance provider. You get it when you pay state unemployment taxes since you also pay federal unemployment taxes at the same time. The amount of tax you pay depends on the number of employees you have and your employee turnover.

 

Professional/product liability insurance

 

You’re probably well aware that customers can sue Ohio companies for various things, and that is why it’s smart to have liability insurance. Its job is to protect you in case of a lawsuit from a customer or client, and there are two types of liability insurance:

 

• Professional liability insurance. Also known as the errors and omissions insurance, it covers businesses that caused harm to a third party because they failed to perform their job. This type of insurance is meant for professionals that often go out on the field and have the potential to injure people.
  
  
• Product liability insurance. If you manufacture and sell products, you could get sued if a customer gets hurt by one of your products. That is why you need product liability insurance which will help you cover the costs of the lawsuit and pay off any potential damages.
  
  

Health insurance

 

While health insurance isn’t required by law, an employer who cares about their workers’ happiness and wellbeing will provide them with this type of insurance. There are two different health insurance policies an Ohio resident can get:

 

• Individual health insurance. This policy is purchased by people who want to provide health coverage to themselves or a family member and it’s the cheaper option, which is why most small business owners opt for it.
  
  
• Group health insurance. This type of policy is sponsored by the employer and the coverage is usually shared between the employee and employer. The cost of this insurance is usually also shared between the employee and employer.

 

There are multiple different health insurance plans business owners in Ohio can choose from, including PPO health insurance plans, HSA-qualified health insurance plans, indemnity health insurance plans, and HMO health insurance plans.

 

While all of them are very different from one another, there is no need to go into detail about them because most small business owners in Ohio opt for the first type of plan, the PPO plan.

 

PPO stands for preferred provider organization. Under this plan, your employees can get their medical care only from the doctors and hospitals that are on the list of your provider’s preferred healthcare facilities.

 

Business interruption insurance

 

Ohio is generally a safe state when it comes to natural disasters, but it does see a few tornadoes per year and other natural disasters such as floods, severe storms, and landslides. If one of these catastrophic events occurs, your business operations will probably be interrupted.

 

While you’re not working, the company will lose a lot of income, so if you’re smart, you’re going to avoid that by getting business interruption insurance. This type of insurance will compensate for the income your business loses due to the natural disaster.

 

Cyber liability insurance

 

The chances of you having a business model that carries out online transactions is very high, as more and more businesses are going online to satisfy the market’s demands. While there are a lot of benefits to having an online presence, there are also a lot of risks that come with it.

 

Of course, we’re talking about cyber-attacks and security breaches. Businesses hold a lot of valuable data, and if that data gets into the wrong hands, you will lose a lot of money and customers. Sure, you need to understand what cybersecurity is and why it is important for business, but that’s not enough.

 

You also need cyber liability insurance, which will provide you with protection in the event of a security breach. Your insurance will cover the cost of notifying the agencies that need to be contacted such as the credit reporting agency as well as the cost of notifying customers.

 

If a forensic investigation occurs due to the security breach, which it will if the breach was dangerous and the loss was detrimental, your cyber liability insurance will help you pay for the investigation.

 

And finally, if the security breach leads to a lawsuit from a customer, your insurance policy will pay for any legal expenses.

 

Final thoughts

 

Starting your own small business is an exciting period in every entrepreneur’s life. However, no matter how excited you are to get into the market and start gaining new customers and outshining the competitors, you need to protect yourself from the worst.

 

You might never even use some of the insurance policies you get, but it’s much better to have them and not need them than to allow something bad to happen while having no coverage at all. An insurance policy is an investment for your business’ safety, and that’s the best investment you can make.