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by Michelle Ferris on Mar 15, 2016

No matter the size of your business, insurance is important.

Many small businesses feel that paying for business insurance will drain their income and the money is better spent funding something else. However, if you don’t have adequate business insurance and you suffer a loss, it could severely affect your business’s ability to generate income. It could even put you out of business.

Ideally, you want to have an affordable business insurance quote which provides adequate business insurance. To achieve this, you either need a business insurance agent working for you, or you need to be well informed of the types of business insurance available and decide what the best business insurance is for you.

Business Insurance for Business Owners

As a business owner, you are probably the vital driving force behind the business. It’s therefore important to protect yourself, your family and your business by getting the appropriate insurance coverage. 

  • Health insurance is essential for business owners. An accident or illness can have a serious impact on a business if the owner is not able to work.
  • Disability insurance is equally important. If you're in a car accident, it's not just the medical bill you need to consider. If your injuries require several months of recovery time, what will happen to your business if you are not there to run it? Select your disability policy carefully as some only cover you if you cannot work at all.
  • For business owners that have families and dependents, you should also consider life insurance. In the event of your death, at least your dependents will be taken care of financially. 
  • In a partnership, one person may be the financier and the other the key person in terms of operations. In this instance, you should consider looking into Key Person Insurance. It’s different from life insurance in that it covers the business rather than the person’s dependents in the event of the death of the key person.

Insurance for Business Operations

Business insurance for different industries and types of business greatly varies. In most instances, businesses can tailor their business insurance quotes so that their business insurance covers what they need, but not what they don't. Here are some of the available business insurance policies.

  • Washington state and many others legislate that any business that has employees, full or part-time, provides workers' compensation. This insurance covers employees in the event of any work-related accidents.
  • General Liability Insurance covers the business against legal claims resulting from negligence, accidents or injuries. It applies to all forms of business from service and retail to manufacturing. In general, it covers the costs of legal defense attorneys as well as the settlement of any bonds or judgments against the business resulting from the claims.
  • Professional Liability Insurance is applicable to businesses that have a service offering. This type of insurance covers malpractice, errors or negligence in service delivery to clients. Professional Liability Insurance is legislated for medical professionals in Washington and most other states.
  • Product Liability Insurance applies to manufacturing, wholesale, retail and product distribution businesses. This type of policy will cover the business if a defective product results in injury or bodily harm for a customer. The business insurance quote will depend on the type of product that the business distributes or sells. A food manufacturing business will need far higher insurance cover than a business that manufactures socks, for instance.
  • Home-Based Business Insurance is different from a standard home insurance policy in that it covers your business assets, such as computers, if you're working from home. These are often not covered by home insurance, so check your home insurance policy carefully before making this assumption. Regardless of the way you choose to structure your policy, it's important to know that both your home and business assets are adequately covered.
  • Commercial Property Insurance covers all aspects related to physical damage that may occur to a business premises. This could be a fire, rain damage, computer network failure or even damage resulting from civil unrest and vandalism. There are two sub-categories of commercial property insurance. Most Commercial Property Insurance policies only have a peril-specific clause if there is perceived to be a higher-than-average risk in one particular area or type of incident.
    • Peril-specific insurance policies cover only circumstances specifically listed in the policy. 
    • All risks insurance covers a wide range of possible incidents. 


Selecting Business Insurance

When considering business insurance, it's important to know your type of business, what possible risks it could be exposed to as well as any legal insurance requirements for your industry or state.

Contact PLC Insurance for a free analysis and business insurance quote.

© 2019, PLC Insurance. The reader assumes all responsibilities for his/her own actions in regards to any items discussed in this report. Adherence to all applicable laws and regulations, federal, state and local, governing the use of any product or service described in this report in the US or any other jurisdiction is the sole responsibility of the reader. The publisher and author assume no responsibility or liability whatsoever on the behalf of the reader of these materials. The reader is encouraged to consult directly with his/her insurance professional.

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