What Business Insurance Do You Need to Start?Business insurance includes more than liability, health, auto and life--the stuff we deal with for our home or family all of the time. When you scratch the surface of insurance for your business, it gets complex and requires a trusted expert to help you steer the right course. Do not try to figure out on your own what you need. We suggest that instead of getting an insurance agent to simply spit out the cheapest quote on a particular type of business insurance, you find an cultivate a long-term relationship with a knowledgeable independent insurance agent who you can rely on over the many years that you will be in business. We have a further suggestion: find an independent insurance agent who "specializes" in your industry or field. Typically, you can do this by joining a business association in your industry, going to membership meetings and meeting an insurance agent there. You can also speak with other entrepreneurs in your industry to find out who they use. If they are happy with their insurance agent, they will generally be happy to recommend them to you. Recommendations are the lifeblood of an insurance agent's growth. Here is an example, we interviewed an independent agent recently who writes all types of policies. Over the years, however, he has specialized in several different industries, as well as writing traditional policies for businesses on Main Street in his town. One of those businesses that he focuses on is the landscaping business. He also sits on the board of a local landscaping association. He currently writes insurance on 100 or so landscaping businesses. He will regularly appear on job sites of his clients to look over their safety programs and make recommendations. This is not some kind of enforcement or "gotcha" thing. He is there to perform a service for his clients and they know it. Now if you were starting a landscaping business, do you want to work with this fellow or an insurance agent who has one or no landscaping clients and does not know the business inside out? As we mention elsewhere, you should form a informal team to help you with your business and the independent insurance agent should be a member of your team. In the area of business insurance, risk and safety, he or she can be as important to your team as your small business-savvy lawyer and accountant. Why do we keep using the term independent agent when we talk about business insurance? Because we suggest that you to find someone who handles a lot of different insurance products by a lot of different companies--not someone who can give you quotes on the cost of a small business group health or medical insurance plan but doesn’t have a clue about the rest of your business. What we also like about the knowledgeable independent agent as opposed to the company person is that he or she is also a small independent business person and fully understands your pressures, concerns and needs to get the best coverage at the cheapest price. Wide Variety of Insurance Coverages from Which to Choose In this article, we are not presenting insurance recommendations for your business; only a qualified professional can do that.In the following table is a selection of potential business coverages you might wish to consider. These are coverages that small business owners have suggested to us and is for reference only. This list by no means is complete with all possible coverages. Further, as you get into it with your insurance agent, a number of these various policies become available under an "umbrella" policy. The purpose of this list is to print it out and use it to say to your agent, what about this? What about that?
See if a Business Owners Policy (BOP) Will Meet Your Needs Looking at the business insurance table above can make your eyes glaze over and give you that empty feeling in your wallet and business checking account. But there could be a simply solution for you that you need to discuss with your insurance agent. That simple solution could be a business owners policy or a BOP. This type of insurance was designed for the small to very small business. If offers a great deal of coverage at an affordable price. Click here to jump to the business owners policy page. Then go to the umbrella policy page. Together, these two policies could go a long way in helping you get what you need to protect your business. Start with Worker's Comp Insurance To start a business, there is one type of business insurance that you have a legal obligation to carry--workers’ compensation. Workers Compensation insurance is required in virtually all states if you have one or more employees. The coverage pays for the medical, pharmaceutical and other health care costs of employees’ work-related injuries. It also pays a portion of the salary of the worker while out of work. Workers’ comp, as it is often called, is not a substitute for health insurance because it only covers work-related injuries. If you fail to carry this coverage, you are subject to severe penalties. If you do not have this coverage and a worker is harmed, you are subject to criminal penalties that can land you in jail. Insurance Questions to Consider with Your Agent When you meet with your insurance agent, here are some questions on insurance to begin the conversation of what your business may need:
Jump from Business Insurance to Home Page |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||