How to Select the Best Small Business Insurance
You’ll need a variety of insurance to cover different aspects of your business, so of course you’ll need insurance agents to take care of each coverage policy for you. Depending on the size of your business, it may be best to have one agent or company to handle all insurance claims and policies. This will help you to avoid any gaps in coverage, and it will be easier for you to notify one insurance companies of major changes in your business, rather than getting in touch with three or four.When you’re looking over insurance policies to purchase, there are a few key components you should be looking for, including worker’s compensation, business property insurance, and liability coverage.
Worker’s compensation is necessary for every business regardless of size (unless you are the only employee). In most cases, you don’t have to worry about startup costs; the State Compensation Fund can fund worker’s compensation until the business expands and you can afford to shop around for more coverage. In addition to worker’s compensation to cover health costs should one of your employees become injured, you can also take advantage of other similar features like risk management for additional coverage that will definitely come in handy in case there is an emergency that you may not completely be able to take care of financially.
Liability insurance is needed for your business, so that you can correct any mistakes or mishaps that could potentially be caused by your business. This type of insurance covers claims of negligence or injuries caused by your products. Getting the right type of liability insurance can be tricky, depending on the type of business you have, but most insurance agents recommend that your policy should match the largest court award for a case concerning your business (so you won’t have to pay directly out-of-pocket for court costs), or you can base you amount of liability insurance on the amount or value of assets your business has. Most basic liability insurance plans cover property damage or loss, advertising injury, personal injury, and bodily injury that results in physical damage or loss.
You’ll also need to take out a property insurance policy. This is necessary in case some type of damage occurs at your actual business location, such as a fire, water damage, or destruction caused by natural disasters, such as a hurricane or tornado. Property insurance covers both the building your business is in and your assets, which include machines or instruments you use to operate your business and additional property (i.e. desks, chairs) in the building. Property insurance will also help to cover the costs of damages done to your business due to vandalism or theft. It’s best to purchase a policy in which natural disasters, vandalism, theft, and asset protection are covered, and depending on the size of your business, you may be able to purchase property and liability insurance together; this is called a Business Owner’s Policy.
A Business Owner’s Policy (BOP) is ideal for small and medium-sized businesses, but in order for your business to qualify, it will have to meet certain criteria. Companies with 100 or fewer employees and revenues of less than one million are encouraged to take out a BOP to for affordability and convenience.
When you’re finally ready to purchase your small business insurance, it’s always a good idea to do some shopping around before making a final decision. Make sure that you do a little research on each company you’re considering; look for things like customer satisfaction, the length of time it takes for the company to process claims, and the helpfulness and knowledge of insurance agents. You can also check the insurance company’s website to see how many of your questions can be answered there, as well as how easy it is to get in touch with someone from the company. It’s also best to select companies that specialize in providing insurance for small businesses and not just businesses in general. This way, it is more likely that your needs will be met, and you’ll be able to afford each policy that you purchase. Small business insurance companies like Zurich and Fortune will most likely have policies that will work for your business, and you can receive free quotes for each policy based on information you provide online to help you make your choice.
