The Basics of Business Insurance:

If you are just starting out with your own business, you may not be aware of the many different types of insurance that you may need. Having your business insured is the only way to ensure that you will be able to meet whatever may come your way, and still stay solvent.

There are several different types of insurance policies that are geared towards businesses. While you may not need all of them, it is a good idea to carefully consider all of your options before making a decision. It is better to have too much coverage than not enough. If you need to combine your insurance needs into one policy, you may want to look into a Business Owner's Package policy or BOP.

Here are some typical insurance needs for a business.

Worker's Compensation

If you plan on having employees, having a worker's compensation insurance plan is absolutely essential. This type of policy will provide coverage should a worker injure themselves on the premises of your business or while working for you.

General Liability Coverage

A liability policy for businesses is necessary, even if you have a home based business that is quite small. This type of policy will protect you if someone else is injured on your property, if a customer is injured while using one of your products, or if someone makes a claim for damages against your company. If you do not have liability coverage, you may not be able to afford to stay in business should someone lodge a complaint against you.

Property Coverage

Your business property will need to be insured to protect against damage, both from people and nature. In addition to the structure of your business, you will also need this type of policy to protect your equipment and your business inventory. In the case of a flood, fire or natural disaster, you could be faced with losing everything. The cost of replacing inventory, or recovering essential data can be devastating for a business owner.

Commercial Automobile Insurance

If you have a commercial vehicle that is used for your business, you may not be able to get by with a regular auto insurance plan. The distinction will lie in how much you use your vehicle and how much your existing personal insurance company is willing to cover.

Business Interruption

If your business was damaged and you were unable to conduct your day-to-day business, your property insurance would cover the costs of rebuilding, but a business interruption policy would provide you with a way to replace your lost income while the rebuilding is taking place.

These are the most common insurance needs for business owners. Each business is different and may require more or less insurance. If you are uncertain of your insurance needs, it is a good idea to discuss your questions with your insurance representative. They will be able to assist you in finding the coverage that is right for you and your business.

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