Some new business owners, in an attempt to minimize expenses, may make the fateful decision to not purchase business insurance. Many see business insurance as a luxury or something that only businesses that have been established for a while can actually afford. And while it is true that there is an expense associated with small business insurance, it is essential for every business regardless of the industry, time in business, or their budget.

The Benefits of Worker’s Compensation Insurance

For any business that has employees, worker’s compensation is a must. Worker’s compensation will cover medical bills and a percentage of lost wages for employees dealing with work related diseases or illnesses. Employers who do not have this type of insurance may have to pay out-of-pocket to cover these expenses. Worker’s compensation provides for different types of benefits:

  • Income Benefits – These benefits will reimburse a portion of an employee’s lost wages.
  • Medical Benefits – These benefits are designed to cover the expense of medical treatment associated with the work related injury or illness.
  • Burial Benefits – These benefits will cover some of the funeral expenses of an employee who died in a work-related incident.
  • Death Benefits – These benefits will pay some of the employee’s lost wages to the family of an employee who was killed while at work.

Commercial Automobile Insurance

According to the Bureau of Labor Statistics, between the years 2003 and 2007 more than 35 percent of work-related fatalities had to do with motor vehicles. Between the same time period, work-related automobile fatalities cost businesses on average $500,000, and each nonfatal injury cost them approximately $74,000. Thankfully, the vast majority of these business owners had commercial automobile insurance.
Any business that uses vehicles in the operation of business needs to have commercial automobile insurance. There is a huge difference between having a vehicle insured for a personal policy and having that same vehicle insured for business use. A vehicle that is only insured for personal use may not be covered if an accident takes place while the vehicle was being used for business.

Protecting Your Business Property with Insurance

As a business owner, you have worked hard to be able to afford the property you own. It is only logical that you should take steps to protect your investment. Business property insurance in many cases will reimburse not only the cost of the property that was damaged or lost, but it will also reimburse the actual loss of earnings for up to 12 months. Coverage is provided to replace things such as computers and other work-related equipment. Certain policies even offer coverage for the money a business spends researching the products they will purchase to replace what was lost. Even individuals who have a home-based business should look into getting this type of insurance.

Protect Yourself with Liability Insurance

We live in a society that is enamored with lawsuits. Even if a business owner feels that the chances of them being sued is little to none, getting liability insurance is still a good idea. Annual premiums for general liability insurance usually run between $750-$2,000 depending on the type of business. That is a small price to pay when compared to the tens of thousands, if not millions, of dollars a business owner may have to spend battling their case out in court.

General liability insurance helps to protect the company’s assets. It will cover certain obligations that a business owner may have, such as the medical costs of a client who gets injured while on the business’s property. It also helps cover the expense of legal defense and any settlement or award paid out if the business owner is successfully sued.

To get a quote or speak to an affordable small business insurance agent, call (305) 220-0900.