Business Insurance 101: A Basic Overview
Starting a business requires a significant investment, and even day-to-day business operations expose you to several risks. So, purchasing business insurance is essential. Here is a closer look at the importance of buying a customized business insurance policy best-suited to your unique needs.
Business Insurance Policy Overview
Business insurance is an asset regardless of whether you own a small business or want to expand your operations. Generally, business insurance protects you against liability disputes, property damage, and other factors that may lead to financial loss. Business insurance also covers your equipment if it is stolen or damaged. Workers’ compensation is another important insurance that business owners must have as it covers the employees if they suffer an injury at the workplace. The policy covers your employee's medical treatment and their lost wages while they are unable to work. You can also adjust your policy coverage and limits as your business needs evolve. You may also consider adding commercial umbrella insurance. Commercial umbrella insurance covers you in the event of serious liability claims when the expenses exceed your coverage liability limits.
Essential Coverages
In most cases, you are legally required to purchase general liability insurance to operate your business. Purchasing commercial property insurance is also recommended. The type of business insurance coverage you need also depends on the type of business you have. You must speak with an insurance provider, as they will be able to customize your policy as necessary.
Why Should You Buy a Business Owner's Policy?
Buying a Business Owner's Policy is recommended if you are operating a small business or working with a limited budget. BOP merges general liability and property insurance into one package. Purchasing a BOP is a more affordable option for many small businesses than purchasing the coverages separately.
Business Owner's Policy also includes business interruption insurance. Business interruption insurance protects your business if you are impacted by a named peril such as an accidental fire or a natural disaster and forced to shut down temporarily. It covers lost wages and other essential expenses. Business interruption insurance ensures that your business continues functioning until the business premise is restored.
Can Business Insurance Premiums Impact Your Taxes?
You should be able to deduct your insurance premiums from your taxes as a business expense if the coverage directly benefits the business.
Potential Add-ons
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Employment Practices Liability Insurance
Employment practices liability insurance protects your business against potential allegations of workplace discrimination, defamation of character, and other wrongful acts.
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Errors & Omissions Insurance
Errors & Omissions insurance covers your legal fees as you protect your business against allegations of negligence and sub-par or misleading services provided to a client.
Consult with Amity Insurance Group
As a business owner, you have to balance multiple roles and responsibilities. Purchasing a strong business insurance policy can help alleviate stress while you focus on maximizing your investment. If you have any questions about your business insurance policy, contact the team at Amity Insurance Group. We will be happy to assist you.
