Looking for business insurance?

Business insurance protects you and your small business with coverage. Every year small businesses and their employees spend billions of dollars for a promise -- a promise that if certain things go wrong, their insurance company will step in and provide financial relief. It's a significant expense for something they can't really see, but which protects their very existence. Few things in life are riskier than launching and running your own business. You needn't compound that risk by neglecting your business insurance options. Protecting your small business from financial disaster will not only preserve all your hard work and long hours, but it will also help you sleep better. 

Shopping for business insurance isn't comparable to buying a new piece of equipment or a car. First of all, you can't see it and second, (hopefully) you'll never use it. But because having a business insurance plan is critical for a small business, you want to be sure you're buying the right business insurance for your company. Be sure to check out your insurance options and get several quotes.

If you're a franchisee, you may be able to buy business insurance through your franchise organization at a reduced cost. Or the franchiser may sponsor insurance pricing specifically tailored for your small business. Trade associations, too, often offer business insurance at a group discount. 

The most prevalent method of buying business insurance, however, is through an independent agent or broker, or through an exclusive agent. Independent agents represent a variety of insurance companies, while exclusive agents work for just one. Your insurance agent will analyze your business and its exposures, research insurance coverage options, offer pricing control advice and assist in the claims process. In short, the agent is a key player in the insurance picture. But how do you make sure you've chosen the right agent? 

Business associates are a good resource, as are trade groups, your local chamber of commerce and other professional organizations. Look, in particular, for an agent who knows your industry. Some agents, for instance, handle primarily restaurants and know the exposures restaurants face and the coverage available. Ask an agent for references, and then call them. 

While agents will sometimes handle only commercial insurance or only life and health, try to keep all of your business with one agent or agency whenever possible. You should select an agent or broker who works with strong, established insurance companies that have good claims records. Insurance companies are rated by independent ratings agencies, and you should look for companies rated A- or better.

Business insurance coverage is not only going to be important to you but it will be important to your other business relationships. For example, if you choose to lease office space, the landlord will typically require that you furnish a certificate of insurance or be listed as an additional insured on your policy as assurance that your business will not disappear overnight in the event a loss occurs.

There are three main types of small business insurance you need, including one that is mandatory. While business property and liability insurance is necessary, you're not legally obligated to have them, whereas employers must provide state-mandated coverage for injuries and illnesses that are job-related through workers compensation insurance.

With that said, however, under no circumstances should a business be uninsured for its property, equipment, and inventory, as well as against its potential liabilities, in this litigious society.

Here is a checklist of insurances a business should have:

  Property & Casualty Insurance

  Business Liability Insurance

  Car or Automobile Insurance for Business Vehicles

  Worker's Compensation Insurance (required)

  Group Health Insurance