Business Insurance 1-2-3
Most business owners insure their businesses - but what kind of insurance does your company need? The
answer depends on where your company is located and what type of business you operate. There are several kinds
of business insurance - some are required and some are optional.
When you insure your business, you have lots of options. That said, many small businesses choose to buy a
Business Owner's Policy because it is simple and saves money. This combination insurance package usually covers
property, liability and criminal damages and costs less than purchasing different insurance policies
separately.
Below is a summary of the most basic kinds of business insurance. These may or may not apply to your
particular business. You can find out by getting a free business insurance quote online.
General Business Liability Insurance pays for claims brought against the business when a
customer or employee is injured on the business premises. General liability insurance can also cover property
damage when you rent.
Property Damage Liability Insurance covers damage to property that you rent and that which
belongs to your customers. Fire Insurance covers costs due to fire destruction,
Earthquake Insurance does the same for earthquake damage, and Flood Insurance
for the results of flooding.
Surety Bonds protect the recipient against loss in case the contractor fails to complete
the agreed-upon work as stated in the work arrangement.
Product Liability Insurance covers claims against your company made by customers or other
users after the product has left your business.
Workers Compensation Insurance covers employees for disability or illness due to the
workplace. It is required by most states.
Car, Truck or Vehicle Insurance is required for vehicles used by the business.
Health Insurance includes health benefits for employees who work for the company.
Home Business Insurance
If you run a home-based business, you still need insurance as you would with a non home-based business. Your
homeowner's policy doesn't necessarily cover property or liability damages due to business activities.
You can either purchase separate insurance for your business, or you can sometimes make adjustments to your
homeowner's policy to cover potential damages that may result from your business events.
Business Insurance Costs and RatesInsurance rates vary by business, and can
depend on the amount of property the company rents or owns, the number of employees, the volume of
activities conducted and the risk involved in the work.
Insurance can get expensive. One way to cut your costs without elevating your risk is to get a policy that
covers 80% of your anticipated needs, rather than 100%. Also, purchasing multiple policies together can be
cheaper than buying separately. Shop around and get quotes from multiple insurance companies to get the best
deal.
Business Insurance Quotes Online
You can meet with your local
insurance agent, and you can use the IIABA (Independent Insurance Agents & Brokers of America)
to find a qualified agent in your area. You can also use the internet to get free insurance quotes online, ask
questions, get answers and compare policies in a short amount of time.
