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Small business Insurance

Insurance is designed to protect businesses and individuals from risks they cannot afford. As a small business owner, you are probably wondering what types of small business insurance you need.

Business property insurance is one of the forms of coverage you will need. Your business property insurance should include: earthquake protection, flood protection, loss of income, loss of assets, and building coverage. You can purchase an all-risk policy that will cover all of your equipment and valuable records. Depending upon the policy you select, it may also include protection for loss of income or other hazards that may force your business to shut down for awhile.

Liability insurance is another popular insurance coverage you should look into. Liability insurance will provide coverage to third parties for the following: personal injury, fire liability, products and completed operations, medical payments or expenses, general liability for your business premise. Again, depending upon the policy you select, you may include other things like malpractice, professional liability and error or omission protection. When you meet with an insurance agent, you should discuss the different options that are available for liability insurance.

Every small business is required to have Worker's Compensation Insurance. In the beginning, the State Compensation Funds should be enough to cover your needs, but as your businesses grows, you will need to look for other coverage options. Like other insurance policies, Worker's Compensation will provide additional services like risk management and loss control services. Worker's Compensation will help to protect your business from claims if an employee is injured on the job.

You can also purchase other small business insurance for auto coverage, health insurance, dental insurance or any other form you think is necessary. Typically for a small business, health insurance benefits are not offered, and if they are, you will have to pay for them. Most health insurance companies will not allow you to purchase health insurance for a company of less than 7 employees. If you are able to get health insurance, your employees may have to pay a large monthly premium in order to keep it, not to mention the amount of money it will cost you as a small business. However, having health insurance benefits will help you recruit good employees, so you need to determine if health insurance is a worthwhile investment.

If you have business vehicles, you need to purchase auto coverage. There are several different plans you can choose from: liability, comprehensive, collision, and uninsured motorist coverage. As with any plan, you need to discuss how much coverage you need and decide if it worth the investment to your company. Having auto insurance will protect your company from any legal problems that may arise if one of your employees causes an accident in one of your company vehicles.

When you are shopping for small business insurance, keep in mind that several carriers may offer lower limits to draw you in. A good business owner will tell the difference affordability and attractive sales techniques. You should always obtain quotes from at least 3 different insurance companies before you settle on a plan. This means you will need to allow plenty of time to meet with insurance agents in person or on the phone. Have a clear definition of what types of coverage you need before you speak with an agent, so you don't get suckered into buying more coverage than you need.

One last type of insurance to consider is life insurance. For a small amount, you can add life insurance into your small business insurance coverage plan and provide your employees with protection in the event that they died. Many insurance companies will offer life insurance as an additional bonus for purchasing their other coverage plans, so this is something to consider.

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