How to Choose the Business Insurance for Your Company
When you’re choosing a business insurance policy, it’s important to determine what your business needs and your budget. Then compare different policies based on key factors like coverage limits, deductibles, the financial strength of the insurance companies, the claims process, and more.
What types of business insurance are there?
There are many types of business insurance policies you can buy. Here are some of the most common business insurance policies:
General liability insurance: Covers claims against bodily harm to someone else, property damage to someone else’s property, or personal injury.
Commercial property insurance: Protects the business building and equipment, including rented property.
Workers’ compensation insurance: Provides employee benefits if they get sick or injured from their job.
Business income insurance: Replaces lost income if the business can’t be run due to property damage or other covered reasons.
Commercial umbrella insurance: Provides extra coverage when an event exceeds the liability policy limits.
How much does business insurance cost?
The price of business insurance policies varies depending on the type, the size of your company, how long your business has been running, coverage limits, deductibles, and other factors.
To determine how much insurance will cost, it’s best to get quotes from multiple sources and compare them.
What is the necessary basic insurance?
All businesses should have some kind of business insurance to protect them from any financial risks. According to the SBA, the federal government requires every business with employees to have workers’ compensation, unemployment, and disability insurance.
Laws requiring insurance vary by state, and some states require additional insurance as well.
Benefits of Business Insurance
There are many potential benefits to buying business insurance. These include:
Reducing the risk of financial liability in case of property damage, sickness, or injury.
Protecting employees from medical bills and loss of wages in case they get sick or injured while on the job.
Compensating customers if they get harmed by a faulty product or if their information is compromised.
Providing funds for a business that cannot operate due to damage to the premises to keep paying the bills.
Getting Started
Getting the right business insurance policy begins by comparing multiple insurance carriers to determine the best option for you according to your business needs and budget. Once that decision has been made, and you submit your application, the insurance company will review your application and reply with any additional requests. After your application is approved, you’ll make your first premium payment, and the insurance company will issue a certificate of insurance (COI) as proof your business is insured.