Accidents happen. It could be fires, car accidents, slips, falls, sickness or worse. And all of these things can occur in your business. This is why all businesses, whether you have a small business or a large corporation, need business insurance.
Here are answers to five of the most frequently asked questions about business insurance to help you choose the best coverage and policies for you and your enterprise:
1. What Is Business Insurance?
The term “business insurance” encompasses all the different types of coverage available to protect business owners from losses. Through business insurance, you can cover your property and business vehicles, insure against legal claims against the business such as liability or workers’ compensation, and more.
2. Why Do I Need Business Insurance?
Even if you don’t think your business has enough assets to be sued, you still need business insurance. Why?
Your business needs business insurance because of the many risks and potential threats to its successful and continued operation; good, tailored business insurance policies can help protect you and your venture as much as possible. Indeed, the smaller your business is, the more likely that you can be held personally liable for debts through your personal assets.
3. What Types of Business Insurance Are Available?
A few of the main types of business insurance you should consider include:
- Property and Casualty Insurance: Property insurance covers the physical location of the business (even if it is rented or leased) and its contents from things like fire, theft, flood, and earthquakes—although read the terms carefully to make sure they include everything you need. Casualty insurance, on the other hand, covers the operation of the business, but the two are usually grouped together in policies.
- Commercial Auto Insurance: Commercial auto insurance covers your business for loss or damage to vehicles used by your business and for damage to others caused by your business vehicles.
- Liability Insurance: Liability insurance covers you in the event someone sues you for negligence, which can occur, for instance, if someone falls on your property.
- Life and Disability Insurance: Life and disability insurance covers your business in the event of the death or disability of key owners, partners, or employees.
4. Can I Get a Policy that Combines Different Types of Insurance?
Yes. A business owner’s policy (BOP), often appropriate for small to medium-sized businesses, usually includes a variety of coverages; you’re likely to pay less expensive premiums with a package deal instead of buying the policies separately.
5. How Do I Buy Business Insurance?
If you are interested in business insurance, you can go through a local Farm Bureau insurance agent near you. The best way for you to prepare to make an informed decision about choosing an insurance plan is to know exactly what your business does (and doesn’t do) as well as its future direction; then ask about the types of coverage you think might be helpful in your line of work.
Information from Legal Zoom