This Q&A covers such things as what a business owners policy is, whether business insurance covers lawsuits and how to get business insurance. While business insurance is not required in all states, it is the best way to protect your company against the many “what ifs” that could happen.
What Is Business Insurance?
Business insurance covers all types of companies and professions. Even though businesses face different risks, they all have similar assets that need to be protected from damages resulting from accidents, mistakes, worker’s comp claims, even cyber crime.
What Does Business Insurance Cover?
Business insurance covers
- damage to your property,
- loss of income if your business is disrupted and the
- cost of defending your business against claims stemming from on-site accidents, mistakes or security breaches that result in losses to a third party.
Does Business Insurance Cover Theft?
No. Business insurance protects your company from claims resulting from injuries and property damage that happen to others while they are on your premises or are caused by your product. It does not cover your losses if your property is lost or stolen.
Does Business Insurance Cover Flood Damage?
No. You need a separate policy to be covered for flood damage. This coverage is crucial if your business is located in a flood zone. Also, it’s important to note: The only type of water damage covered by flood insurance is that caused by rising waters.
Does Business Insurance Cover Lawsuits?
Yes. Business insurance covers lawsuits, including attorney fees, court costs and any damages you’re ordered to pay. Even if you did nothing wrong, the cost of defending a lawsuit can put you out of business.
How Does Business Insurance Work?
The way business insurance works is that when your business suffers a loss, you file a claim. Your insurer assesses the claim, and if it’s justified, your business pays the policy deductible and your insurer compensates your company for the damages up to the policy’s limit.
Do You Need Business Insurance With an LLC?
LLCs are designed to safeguard your personal assets. You still need business insurance with an LLC to protect your company from third-party claims alleging your business operations caused property damage or bodily injury. Win or lose, court costs and legal fees can result in substantial out-of-pocket expenses.
How Much Does Business Insurance Cost?
The cost of business insurance is based on several factors, including the size of your business, your industry and location, how many people you employ and your claims history. Depending on your risk and coverage limits, premiums range from $300 to $900 annually.
Is Business Insurance Tax Deductible?
Yes. Business insurance is considered a cost of doing business just like licensing, wages, rent and office supplies. Business owners can deduct the expense of business insurance from their corporate taxes, according to the IRS.
Is Business Insurance Required by Law?
In some states, yes. Check to see if your state is one of them. Regardless, accidents and mistakes happen and claims against businesses are on the rise. When weighed against the potential cost of being uninsured, business insurance is a smart investment. (42 words)
What Business Insurance Do I Need?
The risks your business faces determines what other business insurance you might need. General liability insurance is a must. Depending on physical assets, number of employees and Internet exposure, you should also consider commercial property, professional, cyber and employment practices liability policies.
What Is a Business Owners Policy?
A business owners policy combines multiple coverages, such as property, liability and business disruption into one convenient policy. That means fewer policies to keep track of and lower premium costs. Depending on your business risks, a business owners policy might cost as little as $100 a month.
How Do I Get Business Insurance?
When you set out to get business insurance, it’s best to pick a provider who understands the marketplace and insures other businesses. The commercial advisors at JAISIN assess your risks, shop the market for competing quotes from several carriers and negotiate on your behalf.
When you’re running a business, your focus is on sales, R&D, fine-tuning services, and of course, your bottom line. Your mind isn’t on property damage, being hacked or customers filing lawsuits. At least it isn’t when you have the protection that the correct business insurance policy provides.
In today’s world, the possibilities for being sued are almost endless. That’s why it’s important to work with insurance advisors, like the ones at JAISIN, who specialize in business insurance. They’ll develop a cost-effective plan specific to your needs, and advise you on how to manage your risks so you remain claim-free.
Business insurance is a small investment to make for the peace of mind and protection the correct business insurance policy provides. Click or call JAISIN Insurance Solutions today to talk with one of our business insurance advisors.