BUSINESS OWNERS PACKAGES

Owning a business brings lots of responsibilities. Most business owners have a long list of things that they must balance to keep the company on track. One very important point that is probably on that list is reviewing or securing a Business Owners Insurance Package. This can be a challenge. A business owner must be sure he has sufficient coverage to protect his business and the livelihood of his staff, but it must be at a price that is affordable.

What types of insurance should you carry?

There are four types of Business Owner Insurance that should be in any package you consider.

1. Property insurance

Property insurance covers the building and land your business occupies. This is a compensation package against loss due to fire, flood, natural disasters and theft. Property insurance also covers the contents of your business such as office furniture, computers, and furnishings.

Consider this coverage carefully. Some policies cover operating expenses in the event of an equipment break down. They may also cover the cost of debris removal and clean-up from a fire or flood.

2. Business Automobile Insurance

This policy covers automobiles and vehicles owned by the company and operated by employees. However, speak with your agent. If your personal vehicle is often used for company business, you may be able to insure your automobile on your company policy.

This insurance covers the replacement or repair costs for a vehicle that is damaged in an accident, fire, flood and other events as determined in the policy. It also covers theft.

3. Liability Insurance

This policy covers your company in the event that someone gets hurt on your property. It also covers your business from law suits due to the belief that your product caused a person damages.

4. Workers Compensation Insurance

Though different rules apply in different situations; all states except Texas requires a company to carry workers compensation insurance. This is to cover medical expenses and a portion of an employee’s wage in the event that they are injured at the workplace. If the employee dies as a result of the injury the compensation is paid to his family.

Money saving tips

1. Bundle your policies. Many business owners have different types of insurance on different policies. For example, he may have a liability policy and a property policy. In some cases they are with different insurance carriers. By bundling all your policies, you may have a lower premium. Also, some companies offer a discount if you allow them to design your complete insurance package.

2. Evaluate your deductibles. As a business grows, the finances and dynamics change. Review your deductibles annually. Your situation may be such that you can afford to pay a higher deductible thus lowering the premiums and putting more money in your pocket each month.

3. Establish a relationship with your Insurance Agent. By allowing your agent to get to know your business, he will be able to foresee issues that may be of concern to you. You should also meet with him from time to time to review your policies. As your business grows, there may need to be adjustments in the amount of coverage you carry.

Just as we insure our homes and lives to protect our families; business owners insure their businesses to protect their property and their employees. By reviewing the options carefully, insurance costs can be affordable and the coverage is invaluable.