When you own a business, you want to protect what you have worked so hard to establish. Business insurance can help to safeguard your company from loss, but it isn’t always easy to figure out exactly what type of insurance your business needs. How do you determine the kind and level of coverage that your business needs? How do you find the best rates and the most comprehensive policies? Learning about business insurance is the first step in getting the coverage that you need. With this knowledge, you can work directly with a business insurance professional to determine what coverage makes sense for your business.
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Types of Business Insurance
The type of business insurance you will need depends on the nature of your company. Business insurance covers a variety of needs, from lawsuits to property damage, to malpractice – and can often be expanded to cover most forms of liability. You can buy individual insurance policies or insurance packages, known as business owner policies (BOPs). These plans combine two or more types of business insurance in one policy, often at a more affordable rate than purchasing separate policies.
So what kind of policy does your business need? Each type of business insurance is designed to protect against different things. Property insurance will provide coverage for the physical property owned by your business, which can include everything from the building itself to inventory, equipment and furnishings. Business property insurance functions much like a homeowner’s policy, with coverage and exclusions for specific events and items. You can review BBG’s full range of reliable business insurance services on our business insurance page.
Understanding Liability Coverage
Liability insurance protects your business if it is sued. There are several different types of business liability insurance. General liability insurance protects you from lawsuits based on accidents, injuries or negligence. Product liability insurance provides coverage for defective products that cause injury or damage. Professional liability insurance protects businesses that provide services, and may also be described as malpractice insurance. There is also an option to elect umbrella liability coverage which provides an additional layer of protection on top of existing general liability coverage.
There are also business insurance policies that provide coverage for issues related to employees. Depending on the number of employees you have and where your business is located, you will likely be required to carry workers’ compensation insurance, which covers employees’ workplace injuries. Employment practices liability coverage protects businesses from employment-related lawsuits filed against it by present or former employees.
Commercial automobile insurance covers incidents related to the use of company vehicles, in much the same way that a personal vehicle insurance policy functions. Businesses can also purchase insurance related to data breaches, which provides coverage in the event that customer or employee data is stolen or inadvertently released by your company.
How Do You Decide What Is the Best Policy for You?
With so many options, it can be difficult to determine what business insurance policies are best for your company. Establishing what risks your business is exposed to is key to finding the appropriate coverage levels that are needed.
To figure out what your business’ needs are, make a list of your liability concerns. What are the possible reasons that your business could be sued or suffer a loss? If your business is in the food services industry, for example, you may be exposed to lawsuits for improperly handled food. If you manufacture equipment, lawsuits may arise from defective products that cause injury. For businesses that have a substantial amount of inventory, your main liability concern may be inventory loss. If your employees use company vehicles, perhaps you are concerned about lawsuits from car accidents. If you are a veterinarian, you may be concerned about being sued by employees who are injured by the animals, or for malpractice. Looking carefully at the type of liability your company may face will help you decide which policy fits both your budget and coverage requirements.
Once you have figured out what your risks are, gather documents related to your company, such as a business plan, financial records and employee information. Look carefully at your budget, and figure out what premium and deductible your company can reasonably support. This information will help a business insurance professional to determine a policy that works with your budget and also satisfies your coverage requirements.
Comparing Options
Finding the right insurance for your business can be a complicated process. To get the best business insurance for your company, you need reliable advice on coverage options and the unique considerations that accompany each. You will also want to compare premium rates. A business insurance consultant can assist in this process, which is particularly useful if you are somewhat unfamiliar with business insurance.
Contact The Business Benefits Group Today!
If you are in the market for business insurance and would like additional information on the types of business insurance that would be appropriate for your company, please contact BBG by giving us a call or sending a message online today. One of the experienced professionals from our Business Insurance Division can take you through the whole process to ensure that your business is protected from any issues that may arise.