Make It Your Business to Be Covered

Running a business is a full-time job and then some. Not being properly insured can make that task all the more difficult.

The main chore at hand when looking for business coverage is locating the right coverage and getting it at a reasonable price.

In an effort to secure the right coverage, consumers should do their homework and shop for multiple quotes. In the event you have a small business, it is likely you do not have a full-time risk manager to answer questions regarding business liability insurance or workers’ comp.

The three best-known types of small business coverage are: general liability, property and workers’ comp insurance.

Property insurance covers your company’s property and inventory against physical loss or damage as it relates to accident, theft or other causes. Qualifying companies can obtain property insurance packaged together with general business liability coverage through a single policy called a Business Owner’s Policy (BOP).

In many cases, small businesses will choose to acquire a pair of business liability insurance options: general liability and professional liability.

Comprehensive general liability insurance protection covers you should there be claims of bodily injury or physical injury or damage to property. This kind of protection is often available in a BOP along with property coverage, offering comprehensive protection in the event of an accident at your place of business or another locale where you do business.

Many states require that companies carry workers’ comp coverage. This form of insurance coverage compensates for medical and disability costs for employees who suffer injuries or illnesses tied to their jobs.

Business insurance rates for workers’ comp coverage are dictated by one’s company payroll and services. A large number of states permit owners, partners and officers of a business to exclude themselves from workers’ comp coverage, saving the business money on premiums.

When it comes to employer’s liability coverage, this is typically made available as a component of a workers’ comp policy. This coverage protects a business in the event an employee makes a claim that an accident or illness resulted from unsafe working conditions.

As for combining property insurance and general liability coverage into a BOP, many businesses can receive appropriate business liability coverage at a lesser cost than they would be by purchasing a pair of separate policies.

It is important for business owners to note that if a BOP’s coverage limits would be less than your company’s potential liabilities, it might be better to pay an additional premium for umbrella coverage. These types of policies fill in the gap when it comes to an underlying policy’s limits and an awarded claim for general liability hired and non-owned auto liability, and employer’s liability. Take note that umbrella policies do not cover professional liability claims.

One final item to keep in mind is that when employers buy all of their business insurance from a single agency or brokerage, their agent can ensure that there are no coverage gaps, giving employers’ satisfaction knowing they’re not paying extra for repeated coverage.