binder labeled insurance next to other business supplies

The Ultimate Guide to Choosing Business Insurance

Business insurance can protect your company from a wide range of negative situations, but you’ll need to make sure you have coverage specific to your type of business. From a cyber attack to natural disasters, business insurance could keep your company afloat when disaster strikes.

Read our guide to stay protected and choose the right insurance for your company today.

The Different Types of Insurance

Property Insurance

Property insurance will protect you from theft or damage to your office. This can include contents such as equipment and furniture. Natural disasters such as accidents and fires could be covered too.

Professional Liability Insurance

Another name for this is Errors and Omissions Insurance. It protects you from mistakes, malpractice, and negligence. It’s often for physicians, accountants, and lawyers.

Commercial Vehicle Insurance

No matter your type of establishment, if you have a company vehicle, this is a good idea. It covers cars and trucks.

It includes damage to property, personal injury, liability, and collisions. Individual policies don’t usually cover commercial vehicles.

General Liability Insurance

General liability insurance covers you against damage to your property or bodily injuries from your services, products, or location. It doesn’t cover employee injuries or professional mistakes.

Workers’ Compensation Insurance

A requirement in most areas, it covers bodily injuries because of your products, services, or business. It can vary from state to state.

Many basic policies will include coverage for hospital visits, workers’ healthcare, physician appointments, prescriptions, and medical tests. It could also include wage reimbursement.

Business Owner’s Policy

This policy protects you against various risks. It can include liability, property, and business interruption insurance.¬†Many prefer this, since it combines multiple insurance policies into one. The cost could be less since you’re combining them.

Cyber Insurance

In 2021, there was a 518% increase in ransomware demands. If your company uses computers, you’ll want to have cybersecurity software. Consider a data breach or cyber insurance policy for extra protection.

Covered expenses can include improving your digital security, recovering data, and restoring your company’s reputation and public relations expenses. It can include costs from customers whose security was affected, along with your operational expenses.

Home-Based Business Insurance

Homeowner’s insurance doesn’t cover certain parts of your home office. A home-based insurance policy will cover supplies, equipment, and other work property. You might need additional insurance if you have customers or clients coming to your home.

Key Person Insurance

Key person insurance can pay for lost income or the hiring of a replacement. This is when you or another head of the company can’t work.

How To Choose Business Insurance

Consider a plan that’ll scale as you grow. Individual employee costs can make scaling with specific policies complex.

Compare multiple insurance providers. The benefits and costs can vary depending on the insurance agency. See what is and isn’t included.

While over-insurance could hurt you financially, not having enough insurance could put your company at risk. Ensure that your insurance meets the requirements of your state.

Perform a Risk Analysis

A risk analysis will tell you where you’re liable in your company and what needs protection. Try to find clauses specific to your niche. Your insurance agent can help you decide which plan is best.

Don’t Only Choose Based on Price

While it can be tempting to go with the lowest price, understand what you’ll receive. Lower prices might mean poor customer service and limited coverage.

Receive as much information as you can about each insurance policy, along with the company’s process for filing a claim.

Consider Future Needs

Consider your needs in advance and discuss them with your insurance agent. This will help to prevent you from having to change insurance policies regularly.

However, review your coverage over time, and not just let it renew. For example, enhance coverage for loss of income if it has increased.

Understanding How To Choose Business Insurance

After exploring this guide, you should better understand how to choose business insurance. Take your time looking at the different plans, talk to an advisor, and choose the right insurance for your company.

Are you ready to get your company protected? Contact us today, and we’ll come up with the right plan that meets your company’s needs.