Does applying for business insurance seem like an added stress in your already busy life? But the time spend is worth it. Business insurance will cover all the losses that can occur during your business transactions. Businesses need insurance for financial protection from potential damage to property, lawsuits, and contract disputes. Businesses need to assess their potential risk before opting for particular insurance.
Why is insurance important in life?
Insurance gives financial protection in many aspects:
● Any damages caused to the business due to the employees, clients, third party, or natural disasters.
● Financial protection from medical and legal expenses.
● Life insurance protects family members after the death of a member.
Importance of business insurance
The top reasons why your business needs insurance is:
- It is mandatory under the law: Most state laws require compulsorily for businesses to be insured. Without insurance, your business might have to face legal complexities.
- Protection of your employees: Having your business insured will ensure that your employees and their family can get benefits like medical care, missed wages, funeral benefits, etc.
- Protection of your customers: The legal or medical expenses of customers who get accidentally injured in your store are covered. You gain financial protection from personal and advertising injury, property damage, and every other type of damage.
- Gives credibility to your business: Your customers, clients, and contractors will trust your business enough to enter into a deal only if it is insured. It assures them proper risk management.
- Most contracts need business to be insured: Be it renting a workspace for your business or borrowing money to finance your goods, or entering an agreement with the client, an insurance cover is a must.
Cost for business insurance
The cost of business insurance depends on a lot of factors:
1.Profession: The risk that a business carries with it varies from profession to profession. The higher the risk involved; the higher will be the cost for business insurance.
2. Number of employees: The higher the number of employees a company has, the higher the cost for business insurance.
3. Coverage needs: The asset occupied by any company determines the coverage needs. The property, equipment, location,
time in business and several other factors determine the business insurance cost.
Business car insurance v/s personal
The main difference between a business and personal car insurance is that commercial auto insurance is something that a business owns. It covers the accidents that occur when the employees are using your business vehicle. Personal insurance is related to your vehicle.
It has no relation to your employment duties. Since this policy has less coverage, it is also comparatively less expensive than business car insurance. Though, both of these insurances cover legal and medical expenses.
How to get insurance on a business?
You can get business insurance following these four steps:
- Assess your risks: Before you go for a particular insurance cover for your business, assess the damages that can occur to your business. To what degree does your business have a risk from fire, earthquake, and other natural disasters or accidents or other lawsuits? Select the insurance plan accordingly.
● Find a reputable licensed agent: Take the help of commercial agents to find that perfect policy for all your business needs. They can help in the risk assessment process and find that one insurance that protects every aspect of the business. They are middlemen who receive a commission for this and have experience of years in this field.
● Compare prices: Plan a budget for your business for the insurance cover. What is the maximum amount your company can pay a premium for an insurance cover? What are the benefits you need for your business at that particular price?Compare as many business policies your insurance agent suggests. Compare their rates, terms, and benefits, etc. for choosing the best policy for your business.
● Re-assess your policy plan and business risks every year: Your business is not in the same position today as it was 5 years ago. There will be growth in your business over the years, and your liabilities will grow as well.
Maybe you will expand the operations or replacing equipment. You cannot expect the same insurance policy to cover all your business liabilities over the years. Reach out to your insurance agent to discuss what plan suits your current business status.
Business insurance general liability
General liability business insurance covers any type of losses that might occur during business operations.
You can claim coverage in the following situations:
- Third-party bodily injury: If any customer gets injured within your store premises, the medical expenses can be covered under this insurance plan.
- Third-party property damage: Any kind of damage that might occur to the property of your employee or you during the scope of the job is covered under this plan.
- Reputational harm: If your employees get sued for defamation, this business insurance can cover the legal expenses.
- Work-related injuries or illnesses: If your employee faces any of these situations, the medical expenses will be covered under this.
- Advertising injury: If your company is involved in any kind of copyright or infringement issues, the legal expenses will be covered under this plan.
Recommended types of insurance for different businesses:
1. Business insurance for landscaping and Arborists: Business income extension for off-premises operations is the perfect insurance plan for these businesses. It will cover the cost of equipment damage.
2. Business insurance for Real Estate Businesses: Commercial auto insurance is the best choice for such businesses. It will cover employee benefits liability or any damages caused by accidents.
3. Business insurance for retail businesses: Business Income from Dependent Properties insurance coverage will cover the income lost because of any kind of business shutdown. It also covers the cost for improvement of the retail stores.
4. Business insurance for restaurants: Restaurants and bars serving alcohol can insure against any type of fire accident due to the liquor. Such insurance will also cover Temperature Change or liquor liability.
Securing a good insurance plan for your business is of utmost priority. Financial losses in businesses are very unpredictable, and you need to be prepared. You can go through multiple options to find the best option for your company.