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Everything You Need to Know About Business Insurance

Everything You Need to Know About Business Insurance

In the course of conducting business, there are several liabilities that could damage the reputation and financials of a company. Damages due to vandalism and theft, employee-related risks, legal protection of assets, and protection of company vehicles are just a few examples of liabilities that a company has. Securing business insurance from an insurance broker company can help you receive insurance coverage and protection for such unforeseen issues.

 

Do I Need Business Insurance? 

 

You never know what catastrophe could hit your business. Being positive and confident of no mishappenings is good, but you would always want to avoid paying for damages and liabilities out of your pocket in the event that they do happen. One might say that business insurance is the small cost of doing business.

 

If you have just started out your business and have no employees, you can choose not to have any business coverage. It is still highly recommended that you do get business insurance to cover business income and other liabilities and damages. However, if you do have employees, you are necessarily required to get business insurance, which mandatorily covers worker’s compensation and unemployment. Other coverages are optional.

 

How Much Does Business Insurance Cost?

 

Several factors determine how much business insurance will cost you. These factors include the size of your company, the number of employees, location(s) of your company, annual revenue, deductibles, the coverage policies you choose, and more.

 

  • Large Business

Your company will come under the large business bracket if you have more than 500 employees. In this case, you can expect that a business insurance coverage of at least $2 million is required for your company.

 

  • Small Business

Small businesses usually pay anywhere between $500,000 to $1 million for business insurance. However, this number depends heavily on which policies you choose to include and how many employees you have.

 

  • Liability Insurance

The two major policies that fall under this are Product Liability Insurance and Professional Liability Insurance. Depending on the industry in which you operate and the dependables your company deals with, your Texas Insurance agent can help you determine exactly how much liability insurance would cost you. There’s no one-size-fits-all situation here, which is why it’s crucial for you to contact your insurance broker for more details.

 

  • Startup Business

The cost of business insurance for startup businesses is usually lower than $500,000. If you are operating out of your home, your costs will reduce even further.

 

In Texas

 

In the state of Texas, while the Worker’s Compensation Insurance is not mandated, it’s highly advisable to secure your business using this. The benefits of this policy can easily cover an employee’s medical bills in case they fall ill or are injured in the workplace. Other than this, you also need to insure all company-owned vehicles with Commercial Auto Insurance. Contact your Texas Insurance agent to get a complete understanding.

 

What Does Business Insurance Cover?

 

Business insurance covers a variety of liabilities, damages, and blunders. Some of the most popular instances that business insurance covers are as follows:

 

  • Negligence claims
  • Theft of or damage to equipment, inventory, and office furniture
  • Liabilities due to improper product functioning
  • Theft of or damage (vandalism, accident) to company vehicles and delivery vehicles
  • Expense coverage when business is interrupted
  • Lawsuits filed by ex-employees, employees, investors, customers, or other entities
  • Health benefits for employees
  • Relief during unemployment

 

How to Get Business Insurance?

 

When determining how to get business insurance, you need to first identify and finalize every risk and liability that might concern your business in the future. Having a ready-to-go checklist of items you want covered can help you get a tailor-made business insurance coverage in no time. Once you have this ready, research on the best insurance broker company options.

 

Make sure to get a quote from each of your options and evaluate which one best fits your needs and budget. At the Thumann Agency, you can call us directly at 972.991.9100 to get multiple quotes.

 

Once you’ve reviewed and zeroed in on your best option, finalize your decision. Remember, always read the fine print and terms and conditions and never go for the first popular Texas insurance agent or company you hear of!

 

What is Business Interruption Insurance?

 

Several businesses require physical locations to do business with their customers. Examples for these include retail stores, bookstores, cafes, coffee shops, restaurants, salons, spas, etc. The business of such companies can be disrupted due to several causes such as curfews, lockdowns, riots, hurricanes, and other such situations.

If you’ve opted for a Business Interruption Insurance, you will be covered against such losses. Commonly included covers are profits, fixed costs, employee payroll, loan payments, taxes, and the cost of moving to a temporary location (if required).

 

Is Life Insurance a Deductible Business Expense?

 

Yes, life insurance premiums are deductible business expenses. However, certain terms and conditions apply to this. They can be deducted as business expenses only if the insured is an employee of the company - knowledge worker, manager-level worker, or corporate - and the company is not a beneficiary of the life insurance policy. Even for non-qualified plans such as executive bonuses, you can get deductibles on your life insurance plan.

 

Does Business Insurance Cover Legal Fees?

 

In the course of its operations, businesses come face to face with several legal issues. These include illegal claims to property, lawsuits filed by customers, ex-employees, or other entities, bodily injury, etc. Business insurance can help you cover any such legal fees. Usually, a Business Legal Expense Insurance covers the lawyer fee, court fees, and any other unprecedented costs that may arise during the course of the lawsuit.

 

While business insurance usually only covers lawsuits filed against the insured, there are some business insurance policies that cover any legal fees in case the insured files a lawsuit against a third-party. Speak with your insurance broker today and find out if you can qualify for the same.

 

Is Business Insurance Required?

There are several different policies that come under business insurance. While your business isn’t required to get insured for all of these policies, the law still requires you to obtain a certain insurance policy under the appropriate circumstances.

 

For example, you might necessarily require a General Liability Insurance as well as a Commercial Property Insurance in case you need to lease a property for your company office. If you have employees, you are compulsorily required to get Worker’s Compensation Insurance. In the case that you provide professional services, you are required to get the Professional Liability Insurance policy.

 

At the Thumann Agency in Dallas, you can even call us directly at 972.991.9100 to identify weak points in your business and learn exactly which business insurance policies you need to get right away.