The ABC’s of Business Insurance

With so many kinds of insurance policies available, a new business owner can get overwhelmed. Here is a primer on business insurance to help orient you. Keep in mind that securing policies through the same company could lead to insurance discounts that make a difference, and that premiums are tax deductible as a legitimate business expense. In a nutshell, business insurance policies exist to cover one or more of these things: property, liability, people or income. For true peace of mind, you will want to have all these bases covered, since serious issues with regard to just one of these factors could wipe out your business overnight.

Property: This refers to the property used in your business, e.g., the building, as well as vehicles, and even the contents and accessories, from computers and furniture to outdoor signs. Policies that protect these are called property, casualty, and commercial insurance. As you consider your needs here, ask yourself what would happen if there were a fire or natural disaster? A theft from an employee? From an outsider? What do you need to protect in order to keep your business going? Make a checklist of the things that would be hard to replace due to cost—you might be surprised.

Liability: These policies protect you against mistakes and accidents. Some even protect against professional malpractice. If your business is open to the public, it is even more likely that someone may hold you liable for an injury, be it scalding hot coffee or a slip on the icy sidewalk in front of your entrance. Liability policies will protect you against these kinds of claims. Your agent can help you design one that suits your kind of business needs.

People: A business’s greatest assets of course are the people who work in it. That means you and your staff. The kinds of policies that protect people are workers compensation, health and life insurance policies. Again, a knowledgeable insurance agent can guide you through these so that you select the optimal policies.

Income: What would happen if your business had to shut down temporarily due to a storm or other catastrophe, for example? You have to keep paying the bills (mortgage or rent and worker insurance policies, for starters) and yet you have no income. A business interruption policy provides income during this period; it can also be set up to allow your business to be set up in a temporary location to keep the income stream flowing.

As you review these categories of property, liability, people, and income, you will begin to see how important it is to consider appropriate insurance to protect what is probably your biggest asset. A review with specialists can help you find the best Newburgh insurance rates and insurance discounts. Then instead of worrying about what could go wrong, you can go about the business of doing business.