4 Essential Insurance Tips for Starting a Business

According to Forbes, there are over 28 million small businesses in the United States. Are you part of one, or starting your own soon? These insurance tips will protect your business from unfortunate and unexpected circumstances!

Get a Good BOP

A Business Owner’s Policy (BOP) is one of the most common insurance plans that small businesses can opt for. In fact, almost all companies that provide business insurance have a BOP package. The coverage includes a variety of things, such as property coverage, liability coverage, and business income coverage.

It also covers some of the most basic insurance expenses businesses may have to face, and can be customized.

Cover Your Employees

BOPs don’t include workers’ compensation, which is a separate insurance policy. This usually covers work-related accidents and illnesses faced by the workers. The requirements vary from one state to the next, but are essential for most businesses if they have over five employees.

In fact, different states also specify who qualifies as a worker as per their law.

Workers’ compensation is based upon the nature of the industry your business is a part of, the type of work that’s done, and the number of employees you may have. It’s a useful tool for businesses as it ensures that they won’t be sued by their workers because of the benefits they’re being offered in return.

Insure Your Vehicles

Does your business have designated vehicles for work-related purposes? Are you relying on your own or an employee’s personal vehicle for business driving? In either case, you’ll need to invest in commercial auto insurance for your business.

This will cover you and your vehicles in case of road accidents and property/vehicle damage. However, you need to verify that the vehicle in question is being used for a business-related activity, even if it’s your personal automobile, for you to avail this insurance plan.

Homeowner’s Policy Won’t Do

Is your business home-based? That doesn’t mean you don’t need business insurance!

A lot of people tend to think that because they have a homeowner’s policy, they’re not in need of a business insurance plan. However, your homeowners’ policy isn’t going to be of much help to your home-based business. The coverage of both these plans is vastly different, and can’t be substituted.

If you want to protect your products, supplies, office space, and other business items, you need a separate insurance plan. A homeowner’s policy won’t cover your loss if your house is met with an unfortunate accident and your business valuables get destroyed.

One Place Financial provides personalized business insurance plans to new and old businesses in Bellflower, CA.

Call us at (562) 867-520 to learn more about our BOP, liability insurance, commercial vehicle insurance,  and workers’ compensation policies.