The goal of doing business is to maximize profit and minimize costs. To accomplish this, a business owner must make strategic choices that account for expected costs and the reinvestment of profits. To keep costs low, an affordable and comprehensive business insurance program can reduce the impact of unexpected losses.
Why You Need Business Insurance
Although we expect business operations to run smoothly, things can and do go wrong. Whether a natural disaster hits, an employee is injured or cyber criminals hack your data system, your insurance program can protect your assets.
The lack of business insurance or inadequate coverage can leave you responsible for property damage, workers’ compensation, liability claims and legal fees. The business could permanently close if you lack the right policies to support your recovery.
Keeping these potential risks in mind, a portfolio of business policies can assist with:
- Meeting State Requirements: In nearly all states, businesses of a certain size must carry disability and workers’ compensation insurance. Without it, you could face fines, civil penalties, legal fees and may be blocked from public contracts.
- Protecting Your Employees: Coverage helps you compensate employees for medical bills and lost wages due to on-the-job injuries.
- Getting and Keeping Contracts: From the lease for your facility to loan agreements, business coverage concerning property damage and liabilities is frequently expected. Why squander your opportunities?
- Attracting Qualified, High-Quality Employees:In today’s workforce, benefits such as health insurance are expected for full-time staff. Employees may also expect life and disability insurance coverage. Mechanics may also want their tools covered using Pro-TEC Tool and Equipment Coverage. https://pro-tecinsurance.com/
How Much Do You Need?
State regulations may determine basic insurance requirements. Commonly required policies are workers’ compensation, general liability and commercial auto insurance, but these may not be enough. Business insurance packages can include any combination of the following coverage types.
Business Owners Policies (BOP): Ideal for small to medium-sized businesses needing a solid baseline, a BOP combines business property, general liability and business income insurance into a single policy. Coverages will assist with liability claims against your business, repairing property damage and keeping your company financially afloat – including bills and other operational expenses – when you’re temporarily closed due to a covered peril. An umbrella policy may be added to this policy.
Commercial Umbrella: This standalone coverage provides additional protection against any potential liabilities facing your business, including bodily injury and property damage. In the event a claim exceeds the limits of your General Liability, Auto Liability or Workers’ Compensation Employer’s Liability, the commercial umbrella may respond to cover these excess liability expenses. Your insurance carrier will require certain limits on all your liability policies before agreeing to issue an Umbrella policy.
Workers’ Compensation: Was an employee injured on the job? As they are receiving treatment and recovering, this policy assists with covering their medical costs and lost wages.
General Liability: Sometimes called business liability or commercial general liability, this policy can protect you in the event a customer or client gets injured on your property or from your product, your business physically damages someone else’s property, you’re accused of libel or slander and many other occurrences. Coverage assists with paying out the claim and legal fees due to your negligence.
Professional Liability: Depending on the field, this may also be called errors and omissions or malpractice insurance. Professional liability insurance is there when one of your customers alleges you failed to deliver quality work. Even if you can prove the work followed and met the expectations of your contract, this policy may help cover the legal costs of defending your claim.
Commercial Auto: Even if your business owns one vehicle or operates as a fleet, makes deliveries or requires workers to drive on the job – even in their own vehicles! – Personal auto policies will not be enough in the event of an accident. Ensure your business is protected for damage to your vehicle, or damage to other vehicles, and bodily injury caused in the accident.
Commercial Property: Whether you own or rent your business space, the potential for damage to your facility and its contents does not change. To protect against thefts, storms, and fires, this policy helps protect your company’s physical assets, including equipment and furniture.
Group Benefits: Group policies are a win-win: Your employees have access to health, life, dental, vision and accidental death and dismemberment insurance. Plus, costs per person tend to be lower.
Cyber Liability: Also called cyber security and data breach insurance. Cyber liability coverage has become an essential component of many business insurance portfolios. If someone were to steal and exploit customer data tomorrow, how would you recover?
Employer Practices Liability, Employee Dishonesty and Flood insurance are a few additional types of insurance coverages that can further protect your business.
At Ion Insurance, we understand the importance of having solid business coverage in place – no matter how big or small the operation. We can help identify your business needs and provide more targeted insurance solutions in line with your budget.
Contact us today for a free business insurance quote!