What is Small Business Insurance?

Small business insurance is an agreement between the policyholder and the business insurance company. The policyholder pays a premium to the business insurance company and the business insurance company agrees to cover the policyholder for specific covered perils stated within the business insurance policy. If an accident is to happen during business hours and a customer or client sues your business for damages, your business insurance policy may be able to cover your company. If you have equipment failure in the business, a good business insurance policy may have you covered.

Should you get small business insurance? 

Typically the only form of business insurance that may be a requirement is workers compensation insurance. Most states by law will require you to carry workers comp if you have at least one employee. There are other situations where having business insurance can improve your chances of landing additional customers as well. For example, some businesses will require that your carry general liability insurance before they will do business with you. 

Even if business insurance isn’t a requirement, it’s always a wise decision to carry policies that can cover your company for risks. For example, if your small business does a lot of deliveries having a good commercial auto insurance policy can protect your company and its drivers while on the road. If customers come into your small business often then having a good commercial property insurance policy and general liability policy can save your company from financial ruin and exorbitant legal fees. 

Accidents can always happen. Usually with big corporations they have the power and influence to manage some risks. Whether they have an extensive legal team in place or the ability to move capital around to cover losses. As a small business some of those same resources may not be available. This is one of the major reasons having good coverage in place can mean all the difference. 

On the flip side a small business will not need the amount of business insurance that a big corporation will need either. The overall costs for coverage will be lower. At Eugene C Yates Insurance Agency we look to understand your business needs so that we can deliver the business insurance policy your company needs at an affordable rate. 

What will business insurance cover?

Business insurance comes in many different forms and can protect your company from various risks. The easiest way to find out the types of insurance your company may need is to speak to a professional business insurance agent like the agents at Eugene C Yates Insurance Agency. They will take a look at all the risks your company may run into and suggest a policy that will protect your small business from multiple threats. Below are a few business insurance types and how they can protect your company;

General liability insurance;

General liability insurance or business liability insurance will help to protect your company from accidents at work. It can help to protect the company from things such as property damage, physical injury, medical fees, and legal fees. General liability insurance can also cover your small business from things such as advertising harm and copyright violations.

Professional liability insurance; 

Professional liability insurance can protect your business and the business owner from accusations of professional mistakes, instead of unavoidable accidents. It will often pay for the cost of work being redone or for damages caused by mistakes in the work done. 

Commercial auto insurance;

Commercial auto insurance can help to pay for damages caused by or to the vehicles your company uses for day to day operations. If there is an accident while your driver is on the road commercial auto insurance can help to protect you.

Workers compensation insurance;

Workers comp can help to cover your business if an employee is injured or becomes sick on the job. It can help pay for medical expenses and lost income. Workers comp is also designed to protect the business owner from being sued due to negligence.

How much is business insurance?

Business insurance will vary from company to company. Industries that take on more daily risks will encounter higher premium costs. For example a contractor will more than likely have higher premiums than an accountant. 

Since every business is different in their own unique way, it’s usually best to get a policy thats tailor suited to your companies needs. This is where speaking to a local agent comes into play. Your agent will look over the risks you could face and find coverage that can protect you from those risks. The agent can also look for all of the discounts that apply to you. 

If you would like to speak to a professional agent today to find out what you qualify for, please give us a call at 916 313 6100