One of the single most common problems with commercial insurance is, most small business owners understand that insurance is a necessity, but they struggle to understand what form of insurance is right for them. The need to make sure they have all of the coverage for their particular business, which can be very challenging, and no one wants to end up paying for more than they require.
Often, it is advised that small business owners seek professional advice from trustworthy sources, such as an accountant, or an insurance broker or agent that specializes within their field or commercial insurance in general. One online tool that might help is the InsuranceEdge service offered by American Express through Bolt(sm).
Typically speaking, a small business will require at least one, if not more of the following types of coverage for businesses:
• General liability/business property – the majority of small businesses can benefit from this type of coverage. It protects you from property damage losses, operation suspensions, or liabilities connected with damage to the property of others, or injury to others.
• Workers’ compensation – this coverage is required for businesses that have employees, to protect them from medical expenses in the event that a worker is injured or becomes ill on the job.
• Product and professional liability – this type of business insurance is meant for companies that manufacture, distribute, or sell products, instead of providing a direct service. It protects the organization from liability regarding safety issues linked to the product.
• Commercial auto insurance – this type of coverage is important if either you or your company’s employees will be driving a vehicle owned by the business.
• Home-based business insurance – this type of coverage protects you from business-related problems occurring within your home, as the typical homeowners policy does not extend to business-related liabilities, damage, and other expenses. This sometimes can be added to your personal homeowners insurance – ask your agent if this is available for your type of business.
With an understanding of the various types of insurance available to small business owners, the next step is to obtain quotes from various insurers and compare the services available, coverage, and premiums.