Risk & Business Magazine Branch Benefits Consultants Fall 2016 | Page 7

BUSINESS INSURANCE 101 Business Insurance Knowing Your Insurance O wning a business can be one of the most rewarding experiences in the world— being your own boss, building something from the ground up, succeeding against the odds. However, it’s important for smallbusiness owners to understand the risks associated with their endeavors as well as how to minimize them. This is where business insurance plays an important role in your operations. While running a business can mean constantly weighing benefits and costs, business insurance is an investment with benefits that far outweigh the costs. Even if your business operates in a seemingly low-risk industry, the peace-of-mind that comes with a business insurance policy is well worth the expense. After all, no one can predict the future, and anything from natural disaster to burglary can cause a business to close its doors. Luckily, with the right coverage, you can ensure operations stay on track even if the worst should happen. The type of business insurance a business will require depends on the type of industry it operates in as well as how it is structured: • • and injuries arising from a faulty product. other benefits as well. • PROFESSIONAL LIABILITY coverage protects service businesses (such as automotive repair facilities) from legal action associated with malpractice, negligence, and errors. • COMMERCIAL PROPERTY coverage will help businesses pay for the total or partial loss of business-related property, such as computers, stock items, documents, and the building itself. This type of insurance covers businesses from damage due to fire, smoke, vandalism, and other destructive events. • Businesses that are operated out of a residential home also need to make sure they’re properly insured. HOMEOWNERS INSURANCE rarely covers damage and loss to home-based businesses, nor to liability claims stemming from such operations. The most obvious benefit to a business owner of business insurance is knowing that any financial loss arising from liability and property damage will not lead to a business going under. However, there are For instance, if a business needs to take out a loan or find investors, being able to show that it’s properly insured can go a long way toward easing people’s minds. Lenders and investors want to make sure their money is safe and will likely be unwilling to do business with anyone who doesn’t have the right coverage. Besides the benefits that business insurance can offer, it’s also legally required for many businesses: • If a small business has employees, it must have WORKERS’ COMPENSATION INSURANCE. If a business doesn’t have this type of insurance, it can face penalties as well as be required to pay for injuries incurred by workers on the job. • Businesses with less than fifty employees are not required to offer company sponsored HEALTH INSURANCE. Businesses with more than fifty employees are required to offer health insurance to their employees. Small businesses with less than twenty-five employees have SHOP option. + GENERAL LIABILITY coverage protects businesses against legal action associated with accidents and injuries. Contact us today to learn more! PRODUCT LIABILITY coverage provides protection against accidents Website: BranchBenefitsConsultants.com Toll Free: 1.855.846.2490 Email: [email protected] BY: QUINCY L. BRANCH, BRANCH BENEFITS CONSULTANTS FALL 2016 | 7