Insurance For Your Small Business
One of the biggest mistakes small business owners often make is not insuring their business, not getting the proper insurance, or under-insuring their business. Work with both your accountant and your insurance agent to ensure that you make the right choices. Business insurance falls into two categories: Insurance that protects your business, and insurance that protects you and your employees. You will need to take a look at both categories to ensure that you have covered all the bases.
The first type of policy to look at for your business is a Standard Business Owners Policy (BOP). This type of policy encompasses several different types of coverage, and offers the best overall protection for your business. A standard business ownerâ€™s policy typically covers property damage, liability, and loss of income due to business interruption. Have your accountant go over the BOP that your insurance agent offers to make sure that it has the coverage that you need.
Business Owners Policies do not cover all of your small business insurance needs - the next type of insurance to look at is automobile insurance. This insurance should cover any vehicles used in the course of your business, such as delivery vehicles and company cars. Automobile Liability insurance is required in most states, for both personal and business vehicles.
A standard business owners policy may include coverage for your equipment, however, if it does not, you will probably want to get a policy that will cover the equipment. For equipment that doesn't fit into other types of coverage, you can purchase a specialized equipment coverage policy. Present a list of the equipment you need coverage for to your insurance agent to find out what equipment can be covered by the different policies available.
For yourself, you will need health insurance, disability insurance, and life insurance. You can also try to find a group insurance package that will enable you to offer these types of coverage to your employees. Even if you cannot offer health benefits to your employees, make sure you have it for yourself. These benefits will help protect your income and your business in case you are hurt or disabled.
If you have employees, you will be required to carry Workers' Compensation Insurance. This covers your employees in case they get hurt on the job. You will need to find out what the specific worker's compensation laws are for your state to make sure that you are in compliance.
Other types of insurance policies you may want to discuss with your accountant and insurance agent are professional liability insurance, umbrella insurance, extra equipment coverage, and keyman insurance. Don't rush into selecting your insurance coverage. Think your choices over carefully, and check around for the best rates with the best coverage.
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