Volume 1 Issue 2: Insurance Needs for Small Business

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Every small business is different. That’s no secret. Neither is the fact that insurance needs for a small business are very different from the type of insurance necessary for your personal needs.

For the most part insurance companies have plans that cover the basics including health, car and property damage for small businesses. However, as a business owner, you must consider liability insurance: protection for you from accidents that can occur on your property or to something on which you worked.

Liability coverage should include bodily injury and property damage, along with coverage for your employees. You also have to consider your legal liability to others for accidents, personal injury, advertising injury and medical payment. A major cost of doing business includes liability coverage.

For small business owners who have company vehicles, there are additional factors to consider. Most business auto policies include a number of specific coverages — each with its own coverage limit. Some coverages will specify a deductible amount. Your insurance agent can help you select the coverages, limits and deductibles you need.
Your company vehicle insurance can include: liability coverage, personal injury protection, medical payments, uninsured motorists coverage, collision coverage and comprehensive coverage. Remember to consider the age and condition of your vehicle when evaluating the limits and premiums you are going to pay. At some point, it may be more feasible, if your vehicle is damaged in an accident, to replace it instead of going through the expense of repair.

Many insurance companies will customize a small business insurance package. This means insurance coverage for property, vehicles, personal (possibly including health), life and liability are packaged together to reduce your total costs.

Some plans are already pre-packaged together; however, coupling those plans with additional coverage may be costly. You should ask your agent to price packaged coverage both ways, using pre-packaged plans with additional plans and with individual plans customized to suit your needs. Also, be certain to ask about special discounts, credits and any coverage options that may be available if you pay your premiums in full.

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