Business Insurance: What You Need and Why

business insurance

No one wants to talk about business insurance, right? It’s not exactly the most thrilling information to discuss. However, that doesn’t mean it’s not important. In fact, if you’re a business owner of any kind, you really can’t afford to not talk about the benefits (and the necessities) of insurance. Have “the talk” today, to protect yourself tomorrow.

General Liability Insurance – A “Must Have”

First things first, when it comes to business insurance, it’s imperative to look at the type of business you’re running. To be completely frank, some business or companies need more insurance coverage than others. Consider high-risk industries, like amusements parks or any type of service that is in the healthcare field. For example, these fields shouldn’t just have insurance, but good quality insurance, as the “unknown” or “unexpected” can be quite costly.

However, those businesses that are low-risk, or are considered to be freelance companies may not need all the bells and whistles. Like in most avenues in life, consider your particular needs. Specifically, it’s important to remember this little tip: The more risk that is associated with your industry, the more insurance you’ll want to consider having.

One type of insurance that is often considered a “must have,” is general liability insurance. If you want to protect your business, employees, and yourself, then consider checking this box. For example, this method of insurance can readily protect you from:

  • Bodily Injury
  • Property Damage
  • Medical Expenses
  • Libel
  • Slander
  • The Cost of Defending Lawsuits
  • Settlement Bonds and more!

Even more convenient, is the fact that with liability insurance, you can generally pick and choose add-ons that cater to exactly what you need. Basically, you won’t waste money on an option you’re never going to use.

Property Insurance

Again, depending on your specific type of business, you may want to have protection when it comes to assets, equipment, and other types of products used on a day-to-day basis. While general liability insurance will sometimes cover property damage, it’s best to be safe than sorry. After all, before any type of damage takes place, you’ll want to know exactly what is covered and for how much. What does this mean, exactly? Read your policy, and then ask questions!

It’s important to note that if you run a business out of your home, the rules are different. You may need to consider an add-on or two. Again, check your specific policy, ask your broker, and make sure everything you need or want to be covered is actually covered.

Workers Compensation

Depending on how big your business is, you may or may not be legally required to have workers compensation insurance. For most areas, the rule is as follows: If you have less than five employees on your payroll, then you’re not legally required to have this type of insurance. Your specific trade or industry can also factor into what you need to have available.

Know What You Need

Bottom line: Each business is different. Therefore, each business will need a different type of business insurance. This isn’t a decision that should be made lightly, but one that needs to be thought about and considered with as much detail as possible. Know what’s best for your company, and ensure that it’s being protected well.

Hotwire Insurance Services local agents can answer all your business insurance requests.

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