If you’re looking into business insurance, knowing its ins and outs is essential and we’re filling you in on everything you need to know.
Whether you’re new to the world of business or are a tenured owner, understanding everything about business insurance is key. The topic of business insurance can be incredibly complicated. So today, we’re taking a deep time into the subject to help clarify any confusion, answer any questions, and help you understand everything you should know when insuring a business.
Ready to learn more? Continue scrolling below.
What is Business Insurance?
Business insurance is one the best, most effective ways for owners to manage risk. This useful tool can help companies manage losses that arise from unforeseen or unplanned events and circumstances. Between a cyberattack, natural disaster, or even just one personal liability claim, your company could be wiped out without business insurance coverage — especially one that is new.
Owners and managers will be able to determine which types of business insurance policies work best for their situation by evaluating and thoroughly understanding their unique risks. Finding an experienced business insurance professional will help you find the best insurance coverage for you and your specific needs.
Why is Business Insurance Important?
It’s no secret that operating or owning a small (or large) business can be a risky endeavor. Business insurance is essential to protect the company against many potential threats to its bottom line. Let’s take a closer look into why insurance coverage for your business is crucial:
- In some cases, business insurance coverage is required by law.
- Business insurance can cover unpredictable situations. It provides businesses a safety net covering just about anything that poses a possible threat or accident, including theft, property damage, data breach, lawsuits, and more.
- Having business insurance helps you appear safe to customers, employees, and investors. It demonstrates the solidity of your company and enables you to build stronger relationships and close big deals.
Types of Business Insurance
When you’re a business owner, there are many directions in which you’ll need insurance protection. That’s where the various types of business insurance come into play. Here are five primary types of insurance you’ll want for your business:
- Professional Liability Insurance — Professional liability insurance, also called errors and omissions insurance or E & O insurance, protects businesses from negligence claims. Of course, there are no one-size-fits-all policies when it comes to business liability insurance because each is so different from the last and they come with their own set of issues. This can be customized for your specific policy needs.
- Product Liability Insurance — If your business manufactures or produces products for sale, it is smart to protect yourself with product liability insurance. Unfortunately, taking every step and precaution to ensure your products are safe, you could find yourself in a lawsuit thanks to damages caused by a faulty product. Product liability insurance helps protect you and your business against such claims.
- Workers’ Compensation Insurance — As soon as you hire employee number one, workers’ compensation insurance should be added to your policy. This important component of your business insurance coverage covers disability, medical treatments, and death benefits in the event of injury or death resulting from working for your business.
Even seemingly low-risk work performed by your employees needs to be covered. Slip-and-fall injuries are one of the most common claims and can lead to medical issues such as chronic neck or back pain that may result in costly claims.
- Commercial Car Insurance — If your business requires one or more company vehicles, make sure to insure them fully. If you fail to insure them, your business vehicles are not protected against liability in case of an accident.
- Property Insurance — Just like all homeowners should have homeowners’ insurance, all business owners should have property insurance, even if they rent the space. This insurance covers inventory, equipment, signage, furniture, and more.
Remember, like homeowners’ policies, earthquake and flood insurance are not always covered. If you need additional coverage, make sure to speak with your insurance broker. Furthermore, if you are operating a small business out of your home, make sure you seek additional information about supplemental insurance coverage since your homeowners’ policy probably will only cover your business-related inventory or equipment.
Business Insurance: 5 Smart Ways You Can Prep Your Business for Commonly Filed Claims
- Add Product Warning Labels — Make sure to label your product with any necessary warning labels clearly. Doing so can help you avoid accidents or costly lawsuits down the line.
- Cover Your Windows — Adding window treatments to your windows can significantly reduce break-ins and prevent burglaries. Between blinds and tinted film, you can keep your equipment and inventory hidden and deter burglars.
- Add Timers Your Lights — Set a timer for lights to come on at your property at various times during the evening and throughout the night. This automation makes it look like people are onsite and working late. Generally speaking, burglars aren’t looking for trouble and want an easy target and will get spooked when they see lights turning on and off.
- Install an Alarm System — Investing in an alarm system that alerts you to break-ins, fires, and other emergencies is one of the smartest moves you can make. The sooner you’re notified of trouble, the faster you can act.
- Trim Overhanging Trees Limbs — Overhanging tree branches can cause an unbelievable amount of damage to your property in a storm. Take a moment to walk the perimeter of your property and address any tree limbs that might cause you or another person to file an insurance claim.
Need Business Insurance? Contact Bear River Mutual Insurance Today!
The best way to protect yourself as a business owner is to invest in a quality business insurance policy, and the experts at Bear River Mutual can help.
Business insurance is an essential part of owning a business, and without it, you are putting your company at risk. That’s why our team of qualified professionals is here to help you find the best policy for your business that provides coverage for assets, liability, and physical and intellectual property.
Our skilled and trusted team can help you find the right policy for your business’s specific needs. Contact us to get your free quote today. You will find us in three convenient locations in Northern Utah to serve you better: Salt Lake City, Provo, and Orem.
