Most people think of skipping business insurance to save money.
But when disaster strikes, you’ll spend a lot more money on repairs than you would have by having the right insurance policy. Types of business insurance vary based on your industry and the size of your business. Check out this guide to choosing the right Business insurance for your organization.
Types of Business Insurance
As a business owner, you eat what you kill. While this is thrilling to some, it provides too much risk to others.
If you have investors to satisfy, for example, you might not want to gamble with your business outcomes by leaving your company unprotected. There are also legal insurance requirements by the federal and state governments if you have employees.
According to the Small Business Administration, businesses with employees can’t legally operate without worker’s compensation, unemployment, and disability insurance. These types of business insurance help protect both you and your employees.
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If something were to happen to an employee while at work, you want to be sure your business isn’t sued beyond what you can afford to payout and that the employee receives the care they need.
Here are a few other types of business insurance that can help keep your business protected.
If there’s a natural disaster, you’ll need to temporarily shut down your business to deal with damages and repairs. What happens to the income you lose because your business isn’t in operation?
There are around 12 million contract lawsuits filed every year against businesses. In addition to contract disputes, there are tort cases that involve discrimination, slip and falls, and wrongful death.
Even Fortune 500 companies fall victim to cyber-attacks. Cyber liability insurance protects your company from losses that come from security data breaches.
Start-Up Business Insurance
There is no insurance available that protects you from a lack of interest in your business idea. If you can’t get customers or maintain sales revenue, there is little your insurance policy can do to protect you from financial losses.
Business insurance policies can prevent losses from lawsuits, tax, or government fines. Workers’ compensation needs to be one of the first types of coverage you get.
The minimum number of employees required before you need a policy varies by state, but the most common minimum is between 3 and 5. Workers’ compensation insurance policies explain things like who pays for hospital bills and how employee wages are handled if an employee can’t work due to injury.
How to Get Business Insurance
The key to getting the most appropriate types of business insurance is finding a knowledgeable agency. You don’t need to be an expert in business insurance. A good insurance agent can help you make the right choice.
Talk to us about your biggest worries. The business insurance policy you get today won’t necessarily be the same coverage you’ll need in five years.
Commercial Business Insurance Explained
Business insurance protects millions of businesses across the United States from potential losses. By doing so, it helps to keep the economy running smoothly.
Many business owners invest in insurance to protect their interests. For example, business insurance policies account for nearly half of all casualty insurance coverage in the nation.
It’s especially important for small businesses to consider their insurance needs carefully. Small business owners typically face increased personal exposure in the event of a loss.
If you don’t think you can assess your risk effectively, there’s no need for concern. A licensed, experienced insurance broker will gladly help you assess your needs.
What Does Commercial Business Insurance Cover?
There are several types of commercial insurance that you can select to protect your business.
As an example, business interruption insurance can protect you in the event of a natural disaster. You’d receive reimbursement based on your business income prior to an incident.
Alternatively, commercial liability insurance protects you from litigation. General liability insurance protects you and your company from damages caused when customers use your goods or services. Without this kind of coverage, a lawsuit could bankrupt your company.
If you work in consulting, you may want to consider errors and omissions insurance policy. For example, a client may seek damages if you fail to provide them with information that protects their interests.
Imagine that you’re an accountant and you overlook informing a client about new tax law. Errors and omissions insurance protects you in the event a client sues you because of the oversight.
Federal laws mandate that you must have insurance if you employ a certain number of workers. Worker’s compensation covers important expenses such as hospital bills.
Assessing Your Needs
As a business owner, it’s important to protect your company and employees from losses. The right insurance is a vital part of strategic risk management.
Typically, many small businesses start with general liability insurance. This basic coverage provides protection from the costs and risks associated with litigation.
Today, businesses large and small face the risk of cyberattacks. Accordingly, you can also purchase cyber liability insurance.
This kind of insurance protects you if hackers steal sensitive customer information. Cyber insurance covers the cost of restoring your computer network and other related expenses.
Choosing the Right Insurance
You don’t have to become an expert in commercial insurance to protect your business. The best way to find the right insurance is to work with a knowledgeable insurance agency.
An expert insurance broker can help to protect your business from its biggest threats. More importantly, they can ensure that you remain protected as your business grows and changes.
When partnering with a broker, there’s no need to concern yourself about whether your business is protected continually. A broker will help you meet your ongoing insurance needs.