Choosing the right business insurance for your company involves finding the coverage you need at a reasonable price. This becomes easier when you have a reliable agent or broker and know what questions to ask. Remember, the cost of business insurance can vary based on your specific needs.
If you’re a small business owner, you might not have a full-time risk manager to help you navigate business liability insurance or workers’ compensation insurance. A good starting point is to look into three common types of small business insurance: general liability, property, and workers’ compensation.
Property insurance protects your business’s property and inventory from incidents like accidents, theft, or other damages. This coverage applies even if the property isn’t on your business premises when something happens. Many businesses combine property insurance with general liability insurance into a Business Owner’s Policy (BOP), which can be more cost-effective.
Business liability insurance is essential to protect against common claims. Small businesses usually consider two main types: general and professional liability. General liability insurance covers claims of bodily injuries, physical injuries, or property damage and is often included in a BOP for comprehensive coverage.
Professional liability insurance is crucial for businesses offering specialized services like healthcare, accounting, or IT consulting. Also known as “errors and omissions” coverage, it protects against claims of negligence or mistakes in your services and tends to be more expensive than general liability claims.
Most states require businesses to have workers’ compensation insurance, which covers medical and disability expenses for employees injured on the job. The cost of workers’ compensation insurance depends on your company’s payroll and the nature of your services. Some states allow business owners to opt-out, which can lower premiums.
Employer’s liability insurance, usually part of a workers’ compensation policy, protects against claims that work-related injuries or illnesses stem from unsafe working conditions. If you’re unsure, ask your agent to confirm that your policy includes this coverage.
Figuring out the right business insurance and getting affordable rates can be tough. A trustworthy agent can be a big help here. While state requirements differ, you’ll likely need workers’ compensation insurance for all your employees, with premiums based on payroll. It’s a good idea to get quotes and policy limits from several insurance providers to compare your options comprehensively.