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.
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 Rates
Insurance 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, ask questions, get answers and compare policies in a short amount of time.