Why Is Business Insurance Important?
All businesses face constant risks and exposures that could lead to significant losses and damages. Regardless of the size of your business or the sector in which you operate, you need comprehensive risk management and loss control practices, including an adequate insurance portfolio. Without sufficient coverage, even a single incident arising from a slight error could have irreparable ramifications for your business’s finances and future.
What Insurance Coverages Do Businesses Need?
An adequate insurance package is necessary for all organizations. In most cases, business insurance is more than just a single policy that can be acquired from a single provider. Rather, business insurance generally refers to a collection of coverages that, when combined, can cast a broad array of protection across many common incidents.
Although the specific coverage needs of businesses may vary, an adequate insurance portfolio may include the following:
- General liability—If an incident occurs on your premises and results in a third party, such as a customer or guest, accruing losses, this coverage may be able to help pay for the following incidents:
- Bodily injury
- Property damage
- Personal and advertising injury (e.g., libel, copyright infringement, false advertising)
- Business property—If property used to operate your company is damaged, lost or stolen, your insurance can help pay for repairs or replacement costs. This may include coverage for the following:
- Business income—If an incident forces your business to cease or alter its regular operations temporarily, this coverage can provide financial assistance for resulting losses and expenses, including the following:
- Mortgage payments
- Lost income
- Loan payments
- Temporary relocation
- Workers’ compensation—If an employee is injured in the course of their duties or develops a work-related illness, this type of insurance, which is required for most employers in Virginia, can help pay for the following:
- Medical care
- Vocational rehabilitation
- Lost or reduced income
- Disability and death benefits
- Legal costs (e.g., defense, settlements)
- Professional liability—If your business is accused of providing services or products that were incomplete, insufficient or late, this coverage can help insulate you from financial losses.
- Employment practices liability—If a prospective, current or former employee sues your business for alleged improper workplace practices, such as discrimination, wrongful termination or harassment, this coverage can help pay for legal costs.
Although the aforementioned types of insurance may be applicable for most businesses, your company should also take the time to analyze its operations and specific circumstances to determine if additional coverage is necessary. For example, businesses that regularly utilize vehicles or store information online should strongly consider commercial auto and cyber liability policies, respectively.
How Much Does Business Insurance Cost?
Like most types of insurance, the cost of adequate coverage for your business may vary significantly based on several factors. Before providers can provide you with an accurate quote for sufficient protection, they may consider the following criteria of your company:
- Workforce size
- Company assets
- Annual revenue
- Prior claims history
- Coverage details (e.g., types of coverage, policy limits, deductibles)
Find the Right Coverage
Diligently assessing your business’s risks and exposures and acquiring a suitable insurance portfolio are essential steps to secure its finances and future. However, even the most meticulous companies may be unable to prevent all incidents. Furthermore, as your business evolves, its insurance needs may also change. With all this in mind, it’s critical that you take the time to both thoroughly analyze your risks and exposures and regularly review them with a qualified insurance professional.
The experts at Mequell Green Insurance are well-equipped for this mission. Our agency has over 25 years of experience helping individuals, families and businesses in Glen Allen and the greater Richmond area understand and address their insurance needs. Contact us today to get started.