What Type of Insurance is Right for Your Business?

Business owners face various risks, but the right business insurance can help protect them from the unexpected costs of running a business should something go wrong.

Accidents, natural disasters, and lawsuits could run them out of business if they’re not protected with the proper coverage. So, what kind of small business insurance do owners need, and what does it cover? Here are a few helpful tips for choosing the right policy for your small businesses.

 

The Importance of Business Insurance

As a business owner, you need to carefully consider and evaluate your insurance needs because you may have more personal financial exposure in the event of a loss.

Business insurance, also called commercial insurance, refers broadly to insurance coverages intended for businesses rather than individuals.

Insurance for small businesses protects financial assets and can help pay the cost of lawsuits, property damage, theft, vandalism, loss of income, employee injuries, and illnesses.

For this reason, it is essential for business owners to have insurance to protect themselves.

 

Choosing the best commercial insurance policy can protect you against claims, damages, and lawsuits that may occur. Most small businesses need to purchase at least the following five types of insurance.

1. Liability Insurance

Liability Coverage can help protect your company against claims for bodily injury, property damage, advertising injury, errors, or omissions. In addition, without this coverage, you may be responsible for paying out of pocket for legal costs, such as attorney fees and settlement amounts.

2. Workers Compensation Insurance

Workers Compensation gives your employees benefits to help recover from a work-related injury or illness. It can also benefit your employee’s families if they lose their lives in a workplace accident. Different factors, such as job risk, claims history, and payroll size, can affect workers’ compensation costs.

3. Property Insurance 

Property Insurance covers equipment, signage, inventory, and furniture in the event of a fire, storm, or theft. However, it doesn’t cover mass-destruction events like floods and earthquakes. You’ll need a separate policy if your area is at risk for these issues. According to the  Federal Emergency Management Agency, about 40% to 60% of small businesses never reopen after a natural disaster.

4. Business Auto Insurance

Commercial Auto Insurance helps protect you and your employees on the road if you drive company-owned vehicles for business. In addition, it can help cover property damage and bodily injury claims from an accident your business causes.

5. Cyber Insurance 

Cyber Liability Insurance helps your business respond to a data breach if identifiable information gets lost or stolen personally. In addition, many policies will include extortion coverage, business income protection, and systems failure, all caused by a breach.

 

What is the purpose of business insurance?

 

How Much Does Business Insurance Cost?

It’s comforting to know that Mason-McBride is an Independent Agency, so we can shop and compare policies from multiple premium carriers to find you the right approach.

However, it is essential to remember that coverage and pricing will vary based on several risk factors and that no two businesses are the same.

Variables that can affect premiums include:

  • Size of business
  • Type of business and risk exposure
  • Location of business
  • Property and assets
  • Previous claims history

 

Steps to Buying Commercial Insurance

It might seem daunting at first to buy small-business insurance – especially if you’re a new business owner – but the process can be made much more manageable if you break it down into these four steps:

 

Steps to Buying business insurance

 

When to Reevaluate your Coverage

When it comes to reviewing your insurance policy, it is best to do so every year. At this time, you’ll be able to examine your business goals and potential risks to decide if you’d like to renew your policy or switch to another provider. On top of that, you’ll want to reevaluate your coverage if there’s been a significant change in your company.

Whenever you are uncertain about what changes or adjustments you need to make to your policy, your agent will be able to guide you through the process.

Your insurance policy is designed to protect your business, so as your business grows and changes, so will your coverage. In the event that you require an adjustment to your insurance policy, but aren’t sure what you need, contact an agent to discuss your company’s needs and how coverage options can be customized.

 

The right business insurance can help ensure that both your personal asset and business assets are protected against unexpected disasters.

Understanding your options when insuring your business is an essential first step in obtaining coverage. By speaking to insurance agents, you can determine what coverage makes sense for your business and compare terms and prices to find the best deal for you. Every business is different, so it’s wise to talk to an insurance advisor to guide you through your various options. 

 

Take Action to Safeguard Your Company 

Find out how Mason-McBride can help protect your business and request a proposal.

 

Article By Jamie Parry

Skip to content