Business Insurance Policies 101

Opening a small business can be exciting—and scary. It’s a risk that could end up wasting a lot of time, money, and energy. In fact, 20% of small businesses close within a year. Therefore, you need to give yours the best chance possible by protecting your investment. You need a set of business insurance policies.

 

Why are business insurance policies important?

 

These policies help you weather a variety of disasters, from fires and floods to lawsuits. They can offer general liability protection and also cover lost sales after an accident or disaster. They can even help pay for supplies and inventory needed to get your operation up and running again after an unexpected shutdown.

 

Is business insurance required by law?

 

Some states require businesses to carry certain types of insurance, such as workers’ compensation or disability.

 

What do business insurance policies typically cover?

 

All policies are different, but the most basic will cover financial losses and specific perils such as theft, fire, wind, falling objects, and lightning. Types of business insurance policies include:

 

Business property coverage – protects commercial buildings and contents from covered perils

General liability coverage – will help pay medical expenses if someone is injured on your commercial property 

Business interruption coverage – helps replace lost income and extra expenses from covered perils

Data compromise coverage – helps cover certain costs resulting from data breaches

Business auto coverage – covers commercial vehicles

Employment practices liability coverage – helps cover legal costs if an employee or contractor sues your company

Equipment breakdown coverage – helps repair or replace equipment damaged in a covered incident

Outdoor property coverage – covers furniture and other property located outside of your commercial building

 

How do I get a certificate of liability insurance?

 

We make it easy for you! You can simply call or request a certificate of liability insurance from our website. If you need more information about these certificates, take a look at our handy blog post.

 

Are business insurance policies tax-deductible?

 

Yes. They are considered business expenses, and therefore, they can be deducted from your taxes.