Business liability insurance can be a significant expense for small businesses, but this article may persuade you to see it as an investment in protecting your assets. Business insurance should be at the top of your to-do list as you prepare to operate as a self-storage facility. Self-storage is like any other small business and is not immune to catastrophe. According to Insureon.com, in the US approximately 75% of small businesses are underinsured and 40% of small businesses carry no insurance. If a disaster occurs at an uninsured business, repairs are paid out of pocket and can be financially devastating.
Various types of business insurance are required by law in most states. In Florida, businesses with 4 or more employees must have workers’ compensation insurance and a commercial auto policy. Even if your state does not need it, it protects you as a business owner if tragedy strikes. Business insurance protects you, protects your employees, it protects customers, and it increases credibility. A small business that is bonded and insured is more attractive to customers who want to know their belongings are protected. Especially in coastal states like Florida and Georgia, business insurance provides peace of mind after common natural disasters like floods and hurricanes.
A standard policy covers property damage, personal injury, liability, and natural disasters. Your policy should be specific to your location and the needs of your business.
There are some additional insurance coverage products you should consider in addition to a standard policy.
- Liability coverage for customer belongings is an additional item of coverage you should consider for your business. This coverage protects if belongings are lost, damaged, or stolen for various reasons. (Your customers should also have a personal self-storage insurance policy to protect their belongings.) This extra coverage protects you as a business owner.
- Cyber or data insurance protection. As self-storage moves consistently to a more contactless business, it’s imperative to protect your data against cyber attacks. When cyber attacks happen, this coverage protects your business and extends to any secure information you carry from customers.
- Disposed property. In the event of delinquent payments, many self-storage businesses dispose of personal belongings after a grace period. While this is standard self-storage practice and customers are made aware, it can still create issues if a customer returns to pay their bill and retrieve their items. An added layer of protection benefits you as a business owner.
Rather than seeing business insurance as an expense, it’s important to see it as an investment in securing assets. Consider these replacement costs:
Roof replacement: $17,500-50,000+
Flood damage remediation: $600-50,000+
Storm, wind and hail damage: $2,700-22,000+
An insurance policy is an investment in protecting your business from a catastrophe that is both physical and financial. Especially in Florida where the threat of hurricanes is high, insurance is a necessary investment to secure the future of a business.
It is important to work with an insurance company to select the right coverage needed for your business. Being prepared is the key to staying ahead of difficult situations while running a business.
Coastal Storage is the Argus Network Affiliate for the states of Florida (excluding the Panhandle) and Georgia, we want to help you find new properties and stay on top of your growing business needs. Our team of experts is waiting for your call at 904-591-0140.