Purpose of Coverage
Small business owners have specific needs and requirements when seeking the proper business insurance policy. This is why every small business insurance quote is unique. They must consider the company’s needs and its inherent risks before choosing the insurance policy that meets their needs.
If you have employees, you will need workers’ compensation insurance, which is required in every state. If an employee is injured on the job or becomes sick as a result of working for your business, subsequent costs for medical care and other claims are covered.
Employment practices liability coverage is also worth considering as it has become widely used by businesses small and large. Although an employment liability may not often occur in a small business, other risks may arise, such as an employee suing for wrongful termination or sexual harassment. Either of these cases could cost your company quite a bit without the protection afforded by employment practices liability coverage. As your company grows, so will your need for this insurance.
You might also consider purchasing health insurance for your employees. Many people make a decision about where to accept employment based on company benefits such as health insurance. Thus, if you consider offering health insurance, this may give you a significant advantage in the employee recruitment process.
If your employees are required to drive company vehicles, it is important to purchase commercial vehicle insurance, especially in the event that any employee is involved in an accident in a company vehicle.
In addition to employee-related insurance, small business owners also need insurance to protect their relationships with customers. Liability insurance is essential whether you sell a product or provide a service. Although lower premiums are attractive, you may want to consider buying coverage for approximately $1. million Costs for this extra coverage are minimal, and some believe it is safer to have such protection in this time of frequent lawsuits.
Business owners also should consider obtaining commercial property insurance whether you have a home-based business or separate facilities. Commercial property insurance can cover your property, assets, equipment, and inventory in case of fire, theft, or other threats.
It is generally less expensive for business owners to consider prepackaged policies or Business Owner Policy (BOP). A BOP includes the most common insurance policies for small business owners. However, if a BOP does not cover every area the small business owner needs, they can purchase additional coverage for these areas.
Small Business Insurance Directory