Business Insurance Coverage
Owning and running one’s own business is often a dream come true but it also means that one has a lot in which to protect. Unfortunately, many business owners are unaware of what kind of coverage they are legally mandated to obtain and how to also keep their insurance costs. Reasonable. Arguably, the best way to protect one’s business is to purchase a good and comprehensive business insurance policy. This can be the business person’s defense against such events as accidents, injuries, and lawsuits. If you are ready to open a company’s doors to business, then it is wise to investigate what these policies cover and how they are so vital to a healthy, successful business.
There is no one set amount of coverage that is considered legally the minimum as these all variy from state to state and the type of business being covered. The larger the business (and subsequently the more potential risks there are), the more coverage needed. At the bare minimum, most will find at least property, casualty, and general liability insurance necessary. Should your company have multiple employees, then you will most likely benefit from group health and workers’ compensation coverage. If vehicles for business use are utilized or if employees’ private cars are used in the conduct of your business, you will also require a good commercial auto policy.
Many owners of business, even those who have been in the game for a while, are under the erroneous impression that with the lowering the total coverage they can cut their costs without repercussions. This very far from the truth if the need for your insurance were to arise. If any accidents or injuries happen, the business owner will most likely regret the time he or she decided to cut those costs. Obtaining coverage only for the minimum requirements could turn a minor event into a costly problem. Once the minimum coverage amounts are exhausted, the owner’s own money or the company’s assets can be put in jeopardy depending on the situation.
In addition to basic liability protection, the business owner might also consider product liability coverage and what is referred to as malpractice insurance. These forms of coverage protect a business against financial loss from the negligence or errors of operators, employees or problems with products. Protection from claims for dangerous, defective, or damaged products or malpractice can be a financial life-saver.
One of the best ways to mitigate costs without effecting greatly the coverage protection, is to choose a business owner’s policy, or “BOP.” BOPs are engineered to with the idea of bundling all forms of necessary business coverage in one policy, thus saving the insured substantial costs. As the business evolves and grows, the insurance policy can change with it, through amendments and alterations specifically designed to meet any new risks and to perhaps also contain costs on past risks that no longer are of concern. Business owners should invest the time in investigating this most crucial coverage and purchase good business insurance with proper and comprehensive policy limits before even thinking of putting the business in full swing.