Business Owners

Business Insurance includes a broad range of policy options designed to protect businesses from financial loss. Every commercial operation has its own exclusive set of risks, which means a commercial insurance policy must be tailor made to the business. 

Many factors, from the size of your company to the number of workers you employ, the materials they handle, and whether you have business vehicles, will determine the specific coverage you need to lessen risk and protect your company’s financials.

Business Insurance is a contract between the insurance company and the business. The insurance company agrees to provide financial protection in the event of a specified loss in exchange for premium payments. 

The cost of Business Insurance varies. A typical cost for Business Insurance coverage is $200 per month. Cost also depends on the size of the business. A small home-based business can often be adequately insured for less, while insurance for a large company with many employees and a wide range of business risks will cost substantially more. 

Yes, Business Insurance is tax deductible, as long as the coverage is for the purpose of operating a business, profession, or a trade. Businesses may not withhold their Business Insurance premiums if the coverage is for the purpose of a self-insurance reserve fund or a loss of earning insurance policy.

Business Insurance is required by law if the following apply to your business:

• Unemployment insurance: Applies to a business that has employees and may be obligated to pay unemployment insurance taxes under prescribed conditions. If these conditions are applicable to your business, then you must register your business with the state workforce’s agency.
• Workers’ compensation insurance: If your business has employees, you are most likely legally obligated to carry workers’ compensation insurance, either on a self-insured basis or through a commercial insurance carrier or a state workers’ compensation program. Workers’ compensation laws vary by state.
• Professional liability insurance: Some states require specified professionals to carry insurance against professional liability.
• Disability insurance: Several states require that a business have partial wage replacement insurance coverage for eligible employees for non-work-related injury or illness. These states are California, Hawaii, New Jersey, New York, Puerto Rico, and Rhode Island.

• General liability insurance: Covers third-party liability claims for injuries to other people.
• Professional liability and malpractice insurance: Covers professionals against loss due to negligent professional duty, wrongful acts, and advice and services that lead to another person’s loss or injury.
• Product liability insurance: Covers against faulty products and damage, illness, injury, or death that may occur from using a faulty product.
• Commercial vehicle insurance: Covers commercial vehicles and drivers for collision, liability, property damage, personal injury, and comprehensive coverage (also known as “other than collision”).
• Workers’ compensation: Covers your employees if they get ill or are injured while working on the job.
• Property insurance: Covers loss and damage to your commercial business property due to fires, storms, and other causes.
• Loss of income: Covers your business expenses, such as rent and employee wages, if you can’t operate your business.
• Key person insurance: Covers loss of income that may result from the head of the business or other key personnel becoming incapacitated or passing away (also known as key man insurance).
• Cybercrime insurance: Provides protection for risks due to Internet use and online communications.
• Records retention policies: Covers loss of important data and financial records.
• Specialty coverage: Insurance that covers various specific business risks, such as those of landlords, farmers, and commercial operations that put on one-day events such as seminars or concerts.