With commercial insurance rates consistently on the rise, it’s easy to see why some business owners might be hesitant about coverage, but it’s also a step that business owners can’t skip.
Knowing the types of insurance for small businesses can help you out here, though. It could also mean the difference between a lawsuit and knowing you’re covered no matter what happens.
Read on to learn the essentials about small business insurance.
Workers’ Compensation
When you’re insuring a business, this coverage might be the first thing you think of. If you’ve ever gotten injured on the job, then you know how important it is for the well-being of you and your staff. It’s also a requirement.
This insurance is going to help injured employees with replacement income and medical expenses if they’re hurt on the job. Failure to keep this kind of insurance can result in major penalties.
Business Owners Policy
A Business Owners Policy (BOP) encompasses general liability, property, and auto policies, while workers’ comp is usually in its category. Bundling these policies can help you save time and money, and it can also help ensure that every aspect of your business is covered.
You can visit policysweet.com to get started.
What do those three insurances cover, though?
Commercial General Liability Insurance
This can be bundled in a BOP policy, and it covers third-party lawsuits that involve property damage or bodily injuries.
Typically, it’s going to cover legal and medical costs for these cases. It can even cover your settlements.
Commercial Property Insurance
If you own commercial property, then having this policy is crucial. It’s going to cover the building as well as its assets, equipment, and even personal property that’s used for your business.
You can also purchase extra coverage to protect from a loss of income if any of these things are damaged or destroyed.
Commercial Auto Insurance
Finally, you’ll need commercial auto insurance if you use a vehicle for your business. Typically, personal car insurance isn’t going to cover a commercial vehicle. If you have an entire fleet that needs protection, then commercial auto insurance is a must for your business’s protection.
Commercial auto insurance is going to work similarly to regular auto insurance, though you might need extra coverage depending on the vehicles you’re covering.
Remember the Types of Insurance for Small Businesses
Now that we’ve gone over the types of insurance for small businesses, it’s time for you to get started with your policy. The type of policy you need is going to depend on the business you run, and industries like law, technology, hospitality, construction, and so many others are going to need their specific plans.
The small business organizations that carry excessive inventory pay an additional 30% each year for optimum performance. If they can follow the tips stated above diligently, they will be able to cut that cost down by at least 10% as well as other associated problems. Now that is great, right?
It’s best to meet with an agent before making a decision so you find out your business needs.
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