Does My Company Need Business Insurance?
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Yes, if you have a business and hope to survive, you’ll want to protect against losses like property damage and liability claims against your business. Otherwise, you may have to pay for losses out of pocket or have no assistance if your business becomes inoperable. Each state has their own specific requirements for business insurance.
In most states, the following types of business insurance are mandatory: workers’ compensation insurance, unemployment insurance and disability insurance. It’s best to speak with an agent in your area to see what’s required of you to stay compliant with insurance laws.
Worker’s compensation will cover the costs associated with job-related injuries and illnesses. Unemployment insurance helps workers who lose their jobs for reasons beyond their control.
Most small businesses would do well to purchase a business owner’s policy (BOP), which combines business property, business liability and business income in one affordable policy. With this policy, your business would be covered if there were damages done to the building, equipment, furniture, documents, and all other contents. You’d also be covered if your business operations came to a halt due to a covered catastrophe.
Often, the difference between a business that overcomes a disaster and one that shuts down is the right business insurance policy. When asking yourself if your business needs insurance or wondering how much insurance a business needs, it’s important to consider how much risk is involved in the work you do; the physical premises and the types of natural disasters and crime it will be exposed to; the value of the property and equipment you will store in the business; the intellectual property that will be in your care and the employees and customers of the business.
Only you know what you need to protect yourself, so take a good survey of your business and see where you’re exposed before finding the right insurance agent.