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    Small Business Claims Every Entrepreneur Should Know

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    Here are 6 common incidents you can file a claim for when you have professional liability insurance to protect you and your business.

    As an entrepreneur, your business is your life’s work. Whether you’re an accountant or a photographer, you’ve taken your skillset and turned it into a successful company.

    Of course, with all the work you’ve put into building your business, you likely take great care to provide excellent products and services. But even for the most diligent and cautious entrepreneur, accidents and mistakes happen.

    In this article, we explore some of the most common types of incidents that small business owners often file insurance claims for, including:

    • Slip and fall incidents

    • Property damages

    • Stolen equipment

    • Misrepresentation of services

    • Professional negligence

    • Omission of information

    Read on to learn more about these business claims and how insurance can help protect you.


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    6 Common Small Business Insurance Claims

    If you’re an entrepreneur, the common claims examples outlined below can help you better understand where your business may be vulnerable, as well as the importance of insurance.

    Before we get into the examples themselves, however, you may be wondering about the claims process itself. In the following section, we describe the meaning of a small business insurance claim.

    What is a small business claim?

    In this context, a claim is a formal request from a small business owner to their insurance provider for reimbursement of a financial loss that is covered under their policy. For example, if you have coverage for your office items and some of your electronics are stolen, you can file an insurance claim to recoup that loss.

    Continue reading to learn when else you can reach out to your insurance agent to file a claim.

    You can make a claim when accidents happen

    No matter what type of business you run, if your clients injure themselves or you damage their property as a result of your product, service, or negligence, you can be held financially responsible for costly expenses.

    Here are a few examples of what this could look like for your business.

    1. Slip and fall incidents

    A client visits an interior decorator’s office. During the visit, the client accidentally slips and falls, injuring her arm. Since the injury took place on the business premises, the client now sues the interior decorator. This may leave the interior decorator financially responsible for the medical and legal expenses of the liability claim.

    Fortunately, with small business insurance, the interior decorator would be able to submit a claim to her provider to help cover these costs.

    Related Read: What to Do If a Customer Is Injured on Your Business Premises


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    2. Property damages

    After arriving at a client’s home, a photographer sets up his equipment. His assistant accidentally knocks over a light, which breaks the client’s 60-inch television. As a result, the client demands reimbursement for property damages, leaving the photographer responsible for the cost of replacing the television.

    With small business insurance, the photographer can file a claim to help cover the replacement cost of his client’s television.

    Related read: What Business Owners Need to Know About Property Damage Claims

    3. Stolen equipment

    During tax season, a bookkeeper’s office gets broken into and all of her electronics are stolen. This includes her computer, which contains her accounting software and client information. Even though the data is backed up online, she still faces expensive replacement costs in order to get her business up and running again.

    Due to the bookkeeper’s small business policy, however, she is able to file a claim and remain operational while she sorts through her losses.

    You can make a claim when mistakes happen

    As a business professional, clients view you as an expert in your field. For this reason, it’s important for the services or products that you provide to be up to a certain standard. Of course, everyone makes mistakes, which is why professional liability is an invaluable investment for any business.

    It can help protect you in the event that you make an error, unintentionally omit important information, or even if you haven’t done anything wrong. Below are examples of what this could include.


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    4. Misrepresentation of services

    A copywriter helps a client draft a press release for their business. The client mistakenly believes the copywriter will review the final draft before it’s published. As this is not the case, the company publishes the unfinished press release with inaccurate information, damaging its reputation. The copywriter is sued for damages, which may leave him financially responsible.

    The copywriter fortunately has business insurance, meaning that he can file a claim to help him pay for the legal expenses.

    Related read: Can You Be Sued for Misrepresentation of Services?

    5. Professional negligence

    An architect designs a building for a company. However, the architect makes a sizable error in her blueprints, resulting in a large, unexpected cost for the company. The architect faces a suit for professional negligence and is held liable for the expenses.

    However, with small business insurance, the architect is able to make a claim to help with the costs associated with the lawsuit.

    Related read: Does Professional Liability Insurance Cover Negligence?

    6. Omission of information

    A consultant puts together a quote for a retiring client. After leaving his job, the client discovers that he is not receiving as much of a monthly pension as the advisor had quoted. The client now sues the consultant, claiming that there was an omission in the advisor’s calculations. This may leave the advisor financially accountable for the alleged error.

    Fortunately, the consultant has small business coverage, which enables the advisor to submit a claim to help cover the expenses resulting from this allegation.


    Need Insurance for Your Small Business?

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    Previous Insurance Claims Articles

    Interested to learn about other common claims scenarios? Check out APOLLO Magazine’s previous articles in this series:

    Protect Your Business with Professional Liability Insurance

    Having small business insurance covers you as an entrepreneur in the event of loss, theft, or if you are sued by a client, even if you are not at fault. It can give you peace of mind that you and your business will not come to financial ruin due to bills or fees resulting from accidents or mistakes.

    APOLLO is a leading digital insurance company that’s making coverage for entrepreneurs effortless, so you can focus on what’s important — your business.

    Start your free online application now for APOLLO’s Small Business Insurance, and you could be covered in the next 15 minutes.


    APOLLO Has You Covered

    Get the protection you need in minutes with custom Business Insurance from APOLLO.

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    Originally published September 12, 2022, updated August 25, 2023

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