How Many Forms of Business Insurance Does Your Company Need?

It may seem that your insurance agent is just being pushy because there are so many types of insurance coverage available for business owners. It's important to know where all of the potential liabilities are in your business to make sure that you do whatever you can within your budget to be protected through insurance. Here are some common types of business insurance you should be aware of:

General Liability - This is pretty common and if you have your own (non home) office, you landlord or mortgage company will require this to protect both of you in the event that someone gets hurt on the property and sues.

Professional Liability - Also known as Errors and Omissions coverage or malpractice insurance for medical professionals. In the event that you make a mistake that ends up costing a client money, this is designed to protect you as long as you did everything that you were supposed to in an ethical manner.


Key Man / Key Person (Insurance - If there is an individual in your organization who is so crucial to the success of the business that his or her death could potentially end the business, this is a form of business insurance you will want to consider. It's basically a life or disability insurance policy on a that person (or people.)

Legal Protection - Every business needs a lawyer. Some have them in house, some have them on retainer, some pay as they need them (and subsequently pay more) and some companies take lots of losses because they don't realize the value of having one. For growing businesses, one thing I recommend is having a legal services plan for their business. It can cover lots of things relevant to small business operations such as free advice on legal matters, reviewing documents and writing collections letters, all for one low fee. In my business, it's been a HUGE savings and in many cases allowed me to have the legal protection usually available to companies much larger than mine and for a fraction of the cost. To learn how to get such a plan, visit: http://www.prepaidlegal.com/biz/thefinamarkgroup to learn about Legal Shield's small business plan

Workers Compensation - If you employ at least one person other than yourself, workers compensation insurance is a legal requirement. It protects you against claims by your employees against injuries suffered as a result of their job. In the end, it really protects the employees, and the government requires you to pay for it..

Commercial Auto - Does your business operate vehicles that your employees drive? Then surely you are aware that you need to have a commercial auto insurance on these vehicles beyond personal coverage. The obvious reason is the high volume of driving increases the likelihood of an incident or accident. And those can be very costly, so make sure you not only have coverage, but have enough coverage.

Group Insurance - One way to attract great employees is to offer great salary and benefits. Sure it's costly, but it will also decrease employee turnover which is also very costly. Common group insurance benefits include health, life, disability, legal plans, 401k plans, and dental insurance.

These are the basics and in some cases, asking your insurance agent about an umbrella policy can save you money.

About the Author:
Anthony Kirlew is a lifelong entrepreneur who runs a full service digital media agency (AKA Internet Marketing), runs a business consulting practice, and also manages a personal finance blog (FiscallySound.com.) He is a big advocate for the insurance industry and is currently finishing a book that will educate consumers on insurance options. As a disclaimer, he is a registered Associate with Legal Shield who offers the legal services plan mentioned in this article.

Protect Your Business with Business Insurance

The first thing that you need to understand about business insurance is that every business needs it. If you own and operate a business, there is going to be some kind of insurance coverage that your business requires in order to protect you against the myriad of bad things that can happen. No business or company is immune to bad things happening like injuries on the job, loss of property, liability issues and so on. If you own a brick and mortar business, then insurance against floods, fires and vandalism is essential, for example. 

You need to make sure that you are protecting yourself with the right kinds of insurance coverage from the day that you open your business. This includes making sure that if your business is in New Jersey, you should consult with a New Jersey Business Insurance expert and if you are in Maryland, you should consult with a Maryland Business Insurance expert as insurance requirements can vary state by state

There are many different types of business insurance coverage, and as such, it will take some time and effort to find the right coverage for your business. One of the best possible things that you can do is to sit down with an insurance agent and actually go over your individual business needs and the types of coverage that can meet those needs. For example, you will want general liability insurance, but you may also need product liability insurance if you sell products that you want to protect. Replacement coverage will help insure the replacement of products or equipment in the event that something is vandalized, stolen or destroyed in a natural disaster. A business owners policy is another strong consideration if you can qualify for it, as it will provide several forms of coverage under one policy.

If your company operates vehicles, then you will want to buy the right type of business insurance to cover these vehicles and the employees that drive or operate them. You will want to have insurance coverage to protect your employees in the event that they are involved in property damage, especially if the property belongs to a customer. Each of these types of coverage can be purchased separately or in a combined policy depending on the individual coverage needs of your business.

You absolutely must find a way to protect your business in order to keep it running right, and having the right business insurance coverage can provide you peace of mind and the protections that you need. Each type of coverage is designed to deal with different situations and scenarios, so make sure that you compare the available options and choose the specific types of coverage that are going to meet the demanding needs of your business, your customers and your employees.