When Do You Need Business Insurance?
As a business owner, you take on a number of risks that go along with simply making your company run. To mitigate against these risks, you have the option of purchasing a business insurance policy. While anyone can buy business insurance, not everyone wants to pay the premiums unless they have to. So how do you know when you need to buy business insurance? There are a few factors to consider.
Number of Employees
One of the most important factors for you to consider is the number of employees that you have. If your business is a one-man operation, you may not necessarily need to buy business insurance. If you have multiple employees, you will need insurance. You'll at least need worker's compensation insurance to cover the liability that comes with having people working for you.
Type of Business
The type of business that you run will also have an impact on whether you need business insurance. If you work in an industry where you do not need a physical location for your business, then you may not need to buy a policy. If you don't meet with customers, then you could get away with not having a policy as well. If you run a traditional business where you have a physical location from which you serve customers, you probably need some kind of insurance to protect you from liability.
Most businesses have some kind of financial liability when they work with clients. If you run a business that sells a product or service to customers, you are taking on some liability. If the product or service could negatively affect one of your customers in some way, there is a chance that you could be sued. Because of this, it's generally a good idea to buy at least liability insurance for your business.
Business Insurance Types
There are several different types of business insurance that you could purchase for your company. For example, when you buy a business insurance policy, it can cover the building that you do business in, your equipment and your inventory. One of the most basic types protects your property.You can also buy a liability policy for anyone suing you. Another type of policy that you could purchase is errors and omissions coverage. This type of coverage protects you from financial liability when you make a mistake in your business. For example, if you are an accounting firm and you accidentally leave out some information on financial records that hurts one of your clients, your insurance company will pay for the damage. When you're ready to buy a business insurance policy, there are many different places that you could purchase an insurance policy from. One resource that you could use is BusinessInsurance.org. At BusinessInsurance.org, you can go to a single source to get multiple quotes from different insurance companies. This will provide you with the information you need to make an educated decision.
Making the Decision
When choosing a policy, you have to compare prices and make sure that you're getting the best deal. If you are comparing policies against one another, you need to make sure that you're comparing apples to apples. Once you are sure that the policies are the same, you can realistically compare one policy against another.
When picking which policy to buy, don't simply make a purchase based on which policy is cheaper. Make sure that you're getting a policy that is offered by a quality insurance company that provides the highest level of protection.
Done with When Do You Need Business Insurance? Take me back to Small Business Finance