When people are considering different types of insurance, they usually have a clear understanding of what home owners insurance, auto insurance and even life insurance are for. It just doesn’t seem so cut and dry with business insurance. Today, we’ll try to answer the most frequently asked questions regarding business insurance.
What is Business Insurance?
Business Insurance, much like auto or homeowners insurance, protects your business against loss, damage and liability. A business insurance policy can cover the policy holder against loss or damage to your property and business vehicles. It can also mitigate liability to you personally.
Do I Need Business Insurance?
If you’re just starting your business or have very little assets, you might be questioning if you still need business insurance. Or similarly, people may wonder if business insurance is necessary if they’re incorporated. The answer to all of those is a resounding “Yes”. Regardless of how long you’ve been in business, the assets your business has or even if it’s incorporate, you still have liability involved in owning a business. In fact, the smaller your business is, the higher likelihood that you could be help liable if a monetary judgement is held against you. Business insurance can help alleviate that liability.
Are There Different Types of Business Insurance Available?
Just as businesses types vary from business to business, the insurance polices they carry do as well. The main types of business insurance you should consider are as follows:
- Liability Insurance– Liability Insurance protects the policy holder in the event they are sued for negligence. Such an occurrence might take place if someone fell and were injured on your business property.
- Property Insurance– Property Insurance covers the physical location of the business and its contents from things like fire and theft. Even if the building is leased, property insurance compensates for the loss of the business contents and any improvements that were made by the business owner.
- Commercial Auto Insurance– Commercial auto insurance covers your business for loss or damage to vehicles used by your business and for damage to others caused by your business vehicles. Note that vehicles used for business are not covered under your personal auto insurance policy even if a vehicle is used for both business and personal purposes.
- Product Liability Insurance– Product liability insurance covers your business for damages caused by a product designed, supplied, or manufactured by your business.
- Worker’s Compensation– Worker’s Compensation covers workers if they are injured on the job. If you have 3 or more employees, the State of Michigan mandates your business participates in Worker’s Compensation.
- Business Income Insurance– Business income insurance may compensate for the lost cash flow and profits incurred because of an event that has interrupted your normal business operations.
- Life and Disability Insurance– Life and disability insurance covers your business in the event of the death or disability of key owners, partners, or employees.
Can I Combine Different Types of Business Insurance Into One Policy?
There are many factors involved in deciding what types of business insurance are necessary. Talking with an independent agent about different options and policies is beneficial in saving both time and money, since they are invested in your best interests instead of one specific insurance carrier.
How Do I Get Business Insurance?
If you are a business owner and feel overwhelmed on where to get started, feel free to give us a call. One of Access Insurance Agencies’ four licensed agents can help you find a policy specifically tailored to your particular needs and budget. Give us a call and find out why we say “Handling your insurance is our privilege!”
Let Ringnalda TenHaken Insurance Group take the guesswork out of your coverage, whether it be auto, home, life or business insurance. We value strong relationships with both our carriers and with our clients. Our 2 convenient locations are in Grand Rapids and Holland. Give us a call and find out why we say, “Handling your insurance is our privilege!”
Ringnalda TenHaken Insurance Group 4800 Broadmoor SE Grand Rapids, MI 49512. Phone (616)530-2800
Ringnalda TenHaken Insurance Group – Lakeshore 11595 E Lakewood BLVD Suite 30 Holland, MI 49424. Phone (616)796-0400