Business insurance, also known as commercial insurance, is a broad category of insurance coverages designed for businesses. These coverages allow businesses to protect themselves from loss be it due to lawsuits or physical damage to company property. Without this insurance your company could fail after one hit.
A small company can be bankrupt from accidents ranging from a slip and fall accident that results in a lawsuit, to a large fire that destroys property. While business insurance does not cover every loss, including small things that they company can easily cover, it can be life saving in the event of a huge loss. In addition, you can add those small accidents under deductibles in a comprehensive coverage, allowing help for those small losses. Some huge risks such as earthquakes and floods will need a specialized insurance policy to be covered if you live in an area that frequents these natural disasters.
If you are looking for insurance that protects your business from physical damage to assets, commercial property insurance is what will cover it. Property insurance can be purchased in combination with commercial liability insurance which covers the cost of lawsuits from third parties. Most small businesses obtain both insurance policies by purchasing a business owners policy. This will protect the business from both claims of injury, property damage, and personal or advertising injury making a solid choice for covering many things at once. Other important coverages for many businesses are commercial auto and workers compensation. If you’re business needs insurance for trucks, cars, and other vehicles, a business auto policy can cover those assets. Most businesses are required to purchase workers compensation insurance in accordance with worker protection laws. These policies provide benefits in the form of medical coverage and disabilities that workers are entitled to by law. The policy will also protect you from any lawsuits that may be filed by injured workers.
Before buying any kind of business insurance be sure to educate yourself and be informed of the investment. You may need more or less than the coverages mentioned above, so be sure to do research on your businesses field and what certain businesses require. Another thing to consider when buying insurance is who you buy with. Be sure to check your local area to find the best agency for you. An agent or broker should be a licensed professional who you trust to meet your needs. They can also help inform you of what policies would most benefit your business. The agent will talk with you and complete applications to insurance companies and give quotes for you to choose from. Once you have chosen an insurance policy, you should review it regularly. As your business grows so too should your insurance. Be sure to meet with your local business insurance agent or broker once a year to assess your coverages and renew your policies and ensure the safety of your business, your employees, your products, and your customers. The safety of those who work for you and those who utilize your products should always be the most important thing for any small business.