Women Owned Business Insurance
Women Owned Business Insurance. Four decades ago, women-owned slightly under 5 percent of all small businesses. However, today one-third of businesses are owned by women, and the numbers continue to grow.
Women even today face a lot of hurdles when it comes to establishing their own enterprises, with getting comprehensive insurance coverage being one of them.
Fortunately, things are changing, and today it is comparatively easier and faster for businesswomen to apply for and get general liability insurance and complete coverage. Insurance agents are more receptive to women business owners and their needs, which allows them to custom tailor a women owned business insurance policy for their operation.
Furthermore, many companies in the industry are trying to ensure that women find it easier to get the commercial insurance they need, with many policies now tailored to women-owned businesses.
Women owned business insurance protects businesses owned by women entrepreneurs from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked woman owned business questions:
- Why Do Women-Owned Businesses Need General Liability Insurance?
- Why Are Women Owned Businesses Less Likely To Encounter Insurable Incidents?
- How Much Does Women Owned Business Insurance Cost?
- Where Can I Get More Information On Women-Owned Small Businesses?
Why Do Women-Owned Businesses Need General Liability Insurance?
Statics show that around 75% of all US business owners, including many female-owned businesses, are not insured, out of which 40% of owners have absolutely zero insurance!
However, when they are faced with a natural disaster or maybe even a lawsuit, it often means that these small businesses have to cover the costs themselves. Sometimes covering these costs without women owned business insurance can end up shuttering their business.
How do these top-risk events even happen? Well, several issues can lead to these incidents or events, as they are called. Many times they may be of no fault of the business owner, and other times it may be a mistake made by one of the employees; either way, the business owner has to bear the financial fallout from the mishap since they are the face of the business.
Below is a list of the most common incidents that small business owners generally experience. Women owned business insurance can help protect against most of these issues. (Note - the figures mentioned are approximates based on averages of these incidents from the past five years.)
- Client Contract Disputes – It is estimated that 22.2% of businesses have faced some type of client contract dispute, making professional liability insurance essential to cover the claims. Often the claims made include dissatisfaction, mistakes, and work that wasn't delivered on time. As a women-owned business, you need to have insurance that can step in to cover the financial costs of the dispute.
- Customer Injury Claims - Around 2.4% of businesses reported that they had to deal with customer injury claims. Here having general liability insurance can help to cover the costs when clients or customers are injured on your property.
- A Product that Caused Injury – 2.3% of businesses reported that they were dealing with instances of a product that caused injury or harm to their clients. Here again, having general liability insurance can help cover the legal expenses associated with the lawsuit. However, specifically, you will want to have product liability insurance which is a part of general liability insurance.
Why Are Women Owned Businesses Less Likely To Encounter Insurable Incidents?
Data shows that women business owners are more likely to reveal that they weren't insured for otherwise insurable incidents than male-owned businesses. The reason could be that women tend to, by nature, be more risk-averse when it comes to doing business as compared to men, at least in the way of how risk is traditionally defined.
Also, many female business owners don't have a growth plan in place, i.e., 25% compared to just 11% of male business owners who had a growth plan. That's why women are less likely to encounter risks like debt, or employees, which is why they experience fewer incidents. It is also why female-owned businesses can end up paying less on average for women owned business insurance.
Another factor worth considering is that 48.3% of women are running home-based businesses as compared to men; that's another reason they are less likely to encounter an injured customer.
Then you also need to consider that women are, for the most part, highly likely to run solo businesses by choosing not to employ anyone. Working alone eliminates one of the other risks of doing business, i.e., employee injuries.
While women do have different goals for their business, they are still at risk. Also, it isn't uncommon for women to grow out of their home-based startup and into an office or factory where they need to employ multiple people.
That's when they need to prepare themselves for risk, and having women owned business insurance can save them a great deal of financial strain.
How Much Does Women Owned Business Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small women owned businesses ranges from $27 to $59 per month based on location, industry, revenue, claims history and more.
Women-owned business insurance policies may vary from general liability insurance to product liability, workers' compensation insurance, and professional liability insurance, amongst others.
However, you might not need all of these insurance policies; most will need a general liability policy. That said, what you end up paying for a policy will vary from a few hundred dollars to thousands of dollars annually.
Insurance companies price their policies based on factors like:
- Where your business is located
- How much coverage you need
- Your history of filing claims
- Your business's industry
Every business is unique, and the same goes for every woman-owned business, which is why women owned business insurance rates will vary based on how these factors affect the business.
The best way to find out what you can expect to pay is to get a quote. An all-inclusive quote should give you an excellent idea of what you may have to pay for commercial insurance each year.
Where Can I Get More Information On Women-Owned Small Businesses?
Following are some additional resources beyond insurance for women-owned small businesses:
- Association for Enterprise Opportunity (AEO)
- Association of Women's Business Centers (AWBC)
- National Association of Women in Construction
- National Association of Women in Real Estate Businesses (NAWRB)
- National Association of Women's Business Owners (NAWBO)
- National Women’s Business Council (NWBC)
- Office of Women's Business Ownership
- U.S. Women's Chamber of Commerce (USWCC)
- Women's Business Enterprise National Council (WBENC)
- Women Impacting Public Policy (WIPP)
- Women's Presidents' Organization (WPO)
Women Owned Business Insurance - The Bottom Line
If you have been running a business for a while, do not wait to get general liability insurance and workers' compensation insurance. You never know when something may go wrong, and unless you can pay for the expenses out of your own pocket, the mishap could financially devastate your business.
That's why it pays to plan and be ready for everything, and getting the right women owned business insurance policy needs to be a part of that plan.
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Get useful tips and information about how much commercial insurance costs, small business risks and exposures, how insurance regulations effect your businesses' and detailed descriptions of coverages and exclusions and more. Most small businesses need to buy the following four types of insurance at a minimum to cover their operations from every day risks:
Property Insurance: This policy covers a business if the property used in the business is damaged or stolen as the result of common perils like fire or theft. Commercial property insurance covers the buildings, structures and also business personal property - which includes furniture, inventory, raw materials, machinery, computers and other items.
Liability Insurance: Any company can be sued. Slip-and fall lawsuits are very common and be costly. Customers can claim you injured them or damaged their property - and lawsuits are very expensive. Commercial liability insurance pays damages and can include attorney's fees and other legal expenses. It also ca pay for the medical bills of injured third parties
Commercial Auto Insurance: For vehicles owned by the business. Commercial auto insurance pays bodily injury or property damage costs for which the business is found liable - up the the policy limits for liability and property damage.
Workers Compensation Insurance: In almost every state employers must provide workers comp when there are W2 employees. Workers compensation pays for the medical care of employees and can replace a portion of lost wages - regardless of who was at fault for the injuries.