The local coffee shop on the corner. The quirky clothing boutique downtown. The unique restaurant that put your city on the map. Small businesses are the backbone of every community.
According to the Small Business Administration, there are 28 million small businesses in the United States which yield 55% of all jobs and account for 54% of total sales across the country.
On March 29, we celebrate the efforts of small business owners with National Mom & Pop Business Owners Day.
Why Do We Celebrate?
Allegedly, Rick Segal kickstarted the holiday in honor of his parents, owners of Ruth’s – a hat shop which opened its doors on March 29, 1939 in Everett, Massachusetts. The store had great success as a small business, growing in size and profitability before closing in 1997.
The purpose of the holiday is to honor the hard-working individuals that run small businesses, celebrate their successes, inspire new small business owners and encourage people to patronize local establishments.
The Benefits of Shopping Locally
It’s not all about stimulating the local economy, even though that’s one of the biggest rewards. Shopping locally can greatly enhance your shopping experience.
Small businesses are widely known for focusing on customers. If you have an issue while shopping at a small business, the owner will take the problem seriously and do everything in his or her power to correct any mistakes that were made. Plus, shopping locally means that you’ll always see friendly, familiar faces that are willing to do whatever it takes to ensure you have a positive shopping experience.
Shopping locally has the added benefit of preserving your city’s hidden gems. Small businesses make communities unique, and thriving local economies draw other small business owners and new residents in, helping the area grow and prosper.
Small Business Insurance
Owners should protect their small businesses with quality insurance coverage.
Those running a business out of their homes may not be adequately covered by just their homeowners policies. Typical homeowners insurance only provides $2,500 to cover business equipment, which is often not enough. Plus, standard homeowners coverage likely does not protect owners in the event of lost wages, or supply the proper amount of liability insurance. To protect your venture, you should consider a Businessowners Policy (BOP).
BOPs can provide small business owners with the following coverages, regardless of whether the business is home-based or occupies commercial space:
- Property. This covers the structure of your business space and possessions, such as computers and furniture, up to your policy’s limits.
- Liability. This protection provides coverage for injuries sustained by patrons while on the premises, as well as costs for lawsuits in the event that a business is sued over an incident, such as bodily harm due to a defective product. Umbrella liability policies, which can protect businesses from rarer, costlier losses, can also be purchased.
- Workers Compensation. If an employee is injured while on the clock, workers compensation can provide coverage for medical expenses, and in some cases, lost wages.
- Business Auto. Businesses that use vehicles as part of daily proceedings need to have business auto coverage. This part of a policy can protect business owners from losses that result from an employee driving the company car and getting into a wreck that injures another or damages his or her property.
- Errors and Omissions. This coverage is not one of the portions typically included in a BOP. It’s another subset of liability coverage that factors into businesses that design or build things, give advice or provide physical care. If an employee for a design firm messes up calculations, leading to an injury of a third party which later sues your company, you can be covered, up to your policy’s limits.
No matter what type of small business you’re running, it’s crucial to make sure you have the right amount of coverage. Too little, and you could be faced with losing your business as the result of a lawsuit. Too much, and you could be making the mistake of greatly overpaying for insurance.
Shop Local
On March 29, do your part to stimulate the local economy and celebrate the dedicated business owners in your town or city. Pop into your favorite local spots and wish them a happy National Mom & Pop Business Owners Day!
Shannon Ireland writes for SafecoInsurance.com and HomeownersInsurance.com, an online resource for homeowners and drivers across the country. Offering comparative automobile and homeowners insurance quotes, consumers rely on HomeInsurance.com for the most competitive rates from the top-rated insurance carriers in the country. The HomeownersInsurance.com blog provides fresh tips and advice on a range of financial topics to help homeowners and homebuyers make educated decisions about their insurance purchases.
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