Small Business Insurance For General Liability, Workers Compensation, Commercial Auto and Umbrella Coverage

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If you own a small business you know that with all of the rewards that come with being an entrepreneur there are also financial and legal risks that act as a daily overhang on your business. If one of your employees is injured on the job, the medical costs could bankrupt your business. If somebody slips on the ice in your parking lot or gets sick from the food you serve, your business and your personal financial health could be at risk.

For these reasons, and many more, there exists a variety of insurance solutions for the small business owner. Some of these are required by law while others are required in order to protect yourself and your family from catastrophic financial loss. Here are the top four must have small business insurance policies. Even if you have one or more of the following insurance policies, make sure you regularly get free quotes to ensure you are getting the best deal on your business insurance.

General Liability

Nearly all of us have some sort of general liability insurance in our personal lives. If you drive a car, you are probably required by law to hold general liability which covers you in the event that something happens where you are liable to pay damages to somebody. In your automobile, if you run in to the back of another person’s vehicle, your general liability may cover the costs.

If you have homeowner’s insurance, you may have liability coverage that covers any injuries that occur while somebody is on your property. One example may be if the family dog bites somebody while they are visiting. Not only does homeowner’s insurance cover you if somebody else is harmed, it also covers financial loss to your own property.

A general liability policy for your business acts in the same way. It not only protects you against the financial loss if somebody is injured while on your business property but it also provides relief if a catastrophic event happens to your business. These may include a fire, weather damage, theft, or loss of revenue due to these events and a multitude of other events.

Workers Compensation

Workers compensation is required by law in all states if you employ people on a full or part time basis. When people work, accidents occur. Regardless of the type of job they are performing, the risk of an injury is always a reality and depending on the injury, the costs to you could reach the millions if you didn’t have workers compensation insurance.

This type of insurance covers all types of injuries sustained while working for you, including physical and mental injuries. Your liability without this insurance would include all medical care and loss of income due to the injury. Workers compensation insurance also pays a death benefit to the employee’s beneficiary should the employee sustain a fatal injury while on the job.

Commercial Auto

If your business has a fleet of vehicles in order to carry out the activities of the business, those must be insured as well. This type of insurance isn’t dissimilar to your personal auto insurance in that it covers the vehicle against damage, any damage caused to other people’s property as a result of your commercial vehicle, injuries to others as a result of the actions of the vehicle and certain acts of God including hail storms.

Umbrella

All insurance policies have certain maximums which allow the insurance company to not pay expenses once the maximum amount is exceeded. Some claims can quickly deplete the maximum amount of a certain part of your insurance policies. For this reason, an umbrella policy can be purchased to cover the costs over and above the maximums on your basic policies.

Additionally, an umbrella policy often covers certain situations that aren’t covered in your other policies. One example could be damage from a flood and other catastrophic events. If your business performs services that are considered high risk, you may need an umbrella policy.

Bottom Line

No business owner wants to purchase insurance but even more than individuals, business owners take on much more liability and are often require by law to hold current policies.

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{ 1 comment… read it below or add one }

Miriam February 8, 2011 at 11:19 am

The best place to get a commercial auto insurance quote is NetQuote, the leading online insurance aggregator service. With NetQuote you complete a simple online form and receive a competitive quote from multiple commercial insurance companies.

Commercial Automobile Insurance Coverage

A commercial automobile insurance provider offers a variety of coverages in a typical insurance policy, including the following:

Medical Payments – The medical bills of the driver and occupants of a covered business vehicle are paid through the medical payments coverage portion of your policy.

Uninsured/Underinsured Motorist – When another driver causes an accident that your company vehicle is involved in, but they either have no insurance, or not enough coverage, your uninsured, or underinsured, coverage kicks in.

Liability Insurance – In the case of the driver of your business vehicle being at fault and causing damage to another person’s property, or causing bodily injury to someone, the liability coverage section of your commercial policy is used.

Physical Damage – Physical damage coverage comes into play when a covered company vehicle is damaged in an accident. It also pays out for damage caused by flood, wind, theft, and fire.
Depending on what type of business you have, you may need optional endorsements added to your commercial automobile insurance policy.

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