Choosing the right business insurance for your company involves finding the balance between getting enough coverage and a fair price. If you’re an informed consumer with a reliable agent or broker, you can easily identify the best insurance options for your needs. Knowing which questions to ask can make choosing the best small-business and liability insurance rates simpler, though these rates can vary based on your company’s specific needs.
Many small businesses don’t have a dedicated risk manager to address questions about business liability or workers’ compensation insurance. A good starting point is researching three common types of small business insurance: general liability, property, and workers’ compensation insurance.
Property insurance helps protect your business’s property and inventory from loss or damage due to accidents, theft, or other incidents. It covers your property even if it’s not on the business premises when the incident occurs. Businesses that qualify can combine property insurance with general business liability insurance into a Business Owner’s Policy (BOP), which typically offers good value for small businesses.
Business liability insurance is critical for defending against common claims. Small businesses often go for two main types: general liability and professional liability. General liability insurance protects you against claims of bodily injury, physical injuries, or property damage. It’s often included in a BOP along with property coverage, providing comprehensive protection in case of an accident at your business location or any other related site.
Professional liability insurance is essential for businesses providing specialized services like healthcare, accounting, or IT consultancy. Known as “errors and omissions” coverage, it protects your business against customer claims of negligence or mistakes in your professional services. This type of insurance is especially important as professional liability claims can be significantly more expensive than general liability claims.
In most states, businesses are required to have workers’ compensation insurance, which covers medical and disability expenses for workers who get injured or fall ill due to their job. The rates for this insurance depend on your company’s payroll and services. Some states allow company leaders to exclude themselves from this coverage to lower premium costs.
Employer’s liability insurance, often included in a workers’ compensation policy, protects businesses from claims that an injury or illness was due to unsafe work conditions. If you’re not sure what your policy includes, check with your agent to ensure it covers employer’s liability insurance.
Figuring out the necessary business insurance coverages and finding affordable rates can be tricky. This is where having a trustworthy agent can be really beneficial. While state requirements differ, it’s very likely you will need workers’ compensation insurance for all your employees. Premiums are often based on payroll and can change depending on whether employer’s liability coverage is included. It’s a good idea to get quotes and policy limits from multiple insurance providers to compare your options thoroughly.