What Type of Insurance Do I Need for My Small Business?

Businesses of all sizes need business insurance to protect their owners, employees and assets. However, specific coverage offerings and associated costs may depend on several factors unique to each business.

What Insurance Does a Small Business Need?

Insurance needs can vary, but most businesses, no matter their size, should consider the following four types of coverage:

1. Commercial property insurance may help compensate a business if its property gets damaged due to covered incidents (e.g., fires, theft, vandalism or severe weather). It might cover the business’s physical building or structure, furniture, inventory, raw materials, machinery, computers and other items critical to normal operations.

2. General liability insurance may help pay for losses and/or medical bills if a business or its employees cause property damage, bodily harm, or personal or advertising injury to a third party. It also often covers legal expenses stemming from third-party liability claims.

3. Commercial auto insurance may help cover bodily injury or property damage costs resulting from accidents involving company-owned vehicles. Coverage for employees’ personal vehicles used for business purposes may also be available.

4. Workers’ compensation insurance may help provide wage replacement and medical benefits to employees who become injured or ill due to work-related incidents.

Smaller businesses may be eligible for a business owners policy (BOP), which would combine some of the above policies into one convenient package. The suitability of a BOP may vary based on a business’s specific characteristics and risk profile. Businesses can speak with AMCO Gulf LLC to determine whether a BOP is right for their operations and exposures.

How Does Small Business Insurance Work?

Business insurance policies are made up of multiple coverage offerings that can help manage a company’s risks. These policies can provide financial protection from losses during typical business operations. When a business owner pays a premium for business insurance, their insurance provider agrees to help reimburse the costs of covered losses up to the specified policy limits. Without such coverage, business owners would have to pay for these costs out of pocket.

How Much Is Insurance for a Small Business?

The cost of insurance varies between businesses. Some factors that are taken into consideration when determining a company’s business insurance premiums include the following:

• Industry or type of business
• Number of employees
• Claims history
• Policy details
• Revenue
• Location

Businesses should discuss their insurance needs with qualified insurance providers to ensure they get the best coverage and limits for their particular circumstances. Businesses can contact AMCO Gulf LLC today to get started and learn more about possible insurance solutions.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.