Insuring Your Business: 5 Questions and Answers About Business Insurance
1. What Is Business Insurance?
The term "business insurance" encompasses all the different types of coverage available to protect business owners from losses. Through business insurance, you can cover your property and business vehicles, insure against legal claims against the business such as liability or workers' compensation, and also provide health insurance for your employees, among other things.
2. Why Do I Need Business Insurance?
Even if you don't think your business has enough assets to be sued, or if you believe because your business in incorporated, you're shielded from personal liability through the so-called "corporate veil," you still need business insurance. Why? Because absolutely anyone can be sued, judgments can be collected through wage garnishments and bank account seizures, and even corporate veils can be pierced under certain circumstances; indeed, the smaller your business is, the more likely that you can be held personally liable for debts through your personal assets.
Your business needs business insurance because of the many risks and potential threats to its successful and continued operation; good, tailored business insurance policies can help protect you and your venture as much as possible.
3. What Types of Business Insurance Are Available?
The main types of business insurance you should consider include:
Property and Casualty Insurance: Property insurance covers the physical location of the business (even if it is rented or leased) and its contents from things like fire, theft, flood, and earthquakes—although read the terms carefully to make sure they include everything you need. Casualty insurance, on the other hand, covers the operation of the business, but the two are usually grouped together in policies.
Commercial Auto Insurance: Commercial auto insurance covers your business for loss or damage to vehicles used by your business and for damage to others caused by your business vehicles. Note that vehicles used for business are not covered under your personal auto insurance policy even if a vehicle is used for both business and personal purposes.
Liability Insurance: Liability insurance covers you in the event someone sues you for negligence, which can occur, for instance, if someone falls on your property.
Product Liability Insurance: Product liability insurance covers your business for damages caused by a product designed, supplied, or manufactured by your business.
Business Interruption Insurance: Business interruption insurance can make up for lost cash flow and profits incurred because of an event that has interrupted your normal business operations.
Health Insurance: Health insurance provides health coverage for you and your employees.
Life and Disability Insurance: Life and disability insurance covers your business in the event of the death or disability of key owners, partners, or employees.
Workers' Compensation Insurance If you have employees, you must, by law, participate in workers' compensation programs; workers' compensati on insurance covers employees if they are injured on the job.
4. Can I Get a Policy that Combines Different Types of Insurance?
Yes. A business owner's policy (BOP), often appropriate for small to medium-sized businesses, usually includes property, casualty, liability, and business interruption coverage; you're likely to pay less expensive premiums with a package deal instead of buying the policies separately.
Other choices are the home office policy, which combines homeowner's and business insurance, and a "business pursuits" endorsement to your homeowner's policy, which provides the least protection.
5. How Do I Buy Business Insurance?
First Insurance Group is made up of a family of well-versed insurance agents who are highly trained in providing you with exceptional coverage and services. We are a full-service agency with years of experience managing a wide range of risk and exposures. We believe that every person deserves to receive exceptional protection from one of the best insurance Agencies in the area. Keep your loved ones safe and protect your assets.
We offer different packages tailored to meet your businesses, ever-changing needs. Tell us more about your business and our team will create or adjust a plan accordingly. Our team is happy to answer your questions and make personalized recommendations based on your input. We are here to represent you and make sure you receive the best possible insurance package suited to your businesses needs.