If you’re thinking about starting a small business or have just opened your doors, you probably have a million things on your to-do list. But, one of the first should be familiarizing yourself with all your insurance coverage options. This will ensure you’re protected from day one and let you get back to doing what you do best – running your business.
The first type of business insurance most people turn to is property insurance because it is similar to homeowners insurance with which they are already familiar. As expensive as your home may be, however, you probably have even more invested in your business.
Property insurance for businesses covers:
- Office buildings, warehouses, and other structures you own
- Property inside business structures, even if you rent your office space
- Equipment and tools
- Business inventory
If a robbery, vandalism, or natural disaster hit your business, would you be able to recover without insurance to cover your losses? For the majority of business owners, the answer is “no.”
Property insurance can also cover special needs, such as:
- Property that is frequently taken off your business site
- Flood or earthquake damage
- Business income during an interruption of service
- Electronic data processing, including power surges and virus attacks
Just ask your agent about your special requirements, and your policy can be tailored to those needs.
General Liability Insurance
General liability insurance, AKA commercial liability insurance, is also vital to your business. It provides broad protection against a multitude of liability exposures, including visitors getting injured at your place of business.
There are also specialized types of liability insurance that may interest you, depending on what type of business you own:
- Errors and omissions insurance: recommended for attorneys, accountants, engineers, architects, insurance agents, and tech companies.
- Employment practices liability insurance: this covers employment-related liability beyond injuries sustained on the job, including discrimination, wrongful termination, sexual harassment, and violations of employees rights.
- Directors and officers insurance: protects the business’s leaders from liability related to omissions, negligent acts, and misleading statements.
Business Umbrella Insurance
Like a personal umbrella policy provides greater coverage against liability at your home, so a business or commercial umbrella policy protects your business. This type of coverage typically kicks in once your general liability policy has been exhausted.
Commercial Auto Insurance
Auto insurance for your business vehicles is similar to your personal auto policy. It covers liability, which may vary from state to state, as well as collision and comprehensive, depending on the policy you select. This way the vehicles that are essential to your business are protected in the event of an accident, theft, or weather incident.
You can also get special commercial auto policies that cover you and your employees for circumstances like:
- Renting vehicles while traveling for work
- Employees using their own vehicles for work
- Using your personal vehicle for your employer, such as making deliveries or sales
Workers Compensation Insurance
Workers compensation insurance covers employees who are injured at work and may need medical care, rehabilitation, or the reimbursement of lost wages. It also protects you from lawsuits in such instances.
Workers comp, as it’s frequently called, has come a long way in the last few decades. Ask your agent about elements like prescriptions, medical disability, and long-term nursing care.
A commercial bond protects you in the event someone with whom you are working in a business capacity breaks a promise or isn’t able to fulfill a contract. This type of security is essential if you work in construction, for example, and rely on subcontractors to meet your contracts with clients.
There are multiple other types of bonds, however. Just ask if you think a bond would be right for you if you deal with licenses and permits, are a public official, or work with the court and probate system.
As you can see, there are literally hundreds of business insurance products available to you to give you greater peace of mind and protect your assets. Call J. K. Meadors & Co at 405-377-0000 to learn more and get the business policies that perfectly meet your unique needs.