Olson Insurance understands that every business, even if home-based, requires the protection that comprehensive insurance coverage can provide. But understanding, purchasing and maintaining the proper business insurance policies can be a daunting experience.
Today’s Business Environment
In the last five years, the population of people who need business insurance has grown significantly.
That’s because it has become easier than ever to be a business owner. Driving for Uber or even completing a couple of contract jobs, qualifies a person as someone who should buy business insurance.
And while working for yourself means a lot more freedom, it also opens you up to certain types of risks that are unique to business owners.
The good news is that business insurance can protect you from most risks.
What Type?
The term “business insurance” encompasses the many different types of insurance available to care for corporations, business owners, and employees of companies. Our well-trained and knowledgeable insurance consultants at Olson Insurance will guide you through the maze of seemingly endless options that include:
- General Liability Insurance: With the day-to-day uncertainties of business management, liability insurance is something a company cannot do without. It’s usually the first policy small-business owners purchase because it offers that advantage of financial protection so that one lawsuit won’t take down the entire company.
Liability insurance is a critical part of any insurance portfolio, regardless of your industry.
- If a customer is hurt on your property, General Liability Insurance can help pay for their immediate medical expenses or your legal expenses if they sue.
- If you damage customer property, General Liability Insurance can help pay to repair or replace it.
- If your product hurts someone, General Liability Insurance can help pay for your legal expenses.
- If someone sues you for slander or copyright infringement, General Liability Insurance can help pay for lawsuit expenses.
- If you, your employees, your products or services are alleged to have caused bodily injury or property damage to a third party, General Liability Insurance can provide protection.
- Professional Liability Insurance provides defense and damages for failure to, or improperly rendering professional services. Professional liability insurance is applicable for any professional person from lawyers and accountants to consultants and even hair salons.
Some refer to this as Errors & Omissions (E&O) Insurance. It protects professional and service providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and the damages awarded in such a civil lawsuit.
The coverage protects businesses against malpractice, errors, negligence, omissions and other related issues. If you’re not sure if you fall under this category, our team at Olson Insurance can guide and advise you.
- Property Insurance: General liability insurance will not cover property damage to your business. If you own your building or have business property, including office equipment, computers, inventory or tools, you should consider purchasing an insurance policy that will protect you in the event of a fire, vandalism, theft, smoke damage, etc.
You may also want to consider business interruption insurance as part of the policy to guard your earnings if the business is unable to operate.
- Business Owner’s Policy (BOP). These are packages that typically include the required coverage a business owner would need. Often, BOP policies will include business interruption insurance, property protection, business liability insurance, vehicle coverage, and crime insurance. BOP typically saves money because the bundle of services often costs less than the total cost of all the individual coverages. Please note that generally, the BOP won’t cover professional liability.
- Worker’s Compensation: Under Arizona law, it is mandatory for employers to provide workers compensation insurance for their employees. Workers comp is a “no-fault” system where an employee is entitled to receive benefits from an industrial injury no matter who caused the job- related accident. If an illness or accident is job-related then the injured worker receives medical benefits and may receive additional compensation for lost wages. Workers comp is required regardless if the employees are full time, part time, minors, aliens or family members. In Arizona employers that don’t carry workers comp insurance are guilty of a class 6 felony. The fines can be quite high and you can be fined even if no one submits a claim. It’s not required for independent contractors, casual or infrequent workers or domestic servants that work in your home. Rates vary widely especially due to the nature of the work. A roofing company will have much higher workers comp rates than a graphic designer.
- Business Life: Why are you in business for yourself? Surely, one reason is that you want to create financial stability for your family. What if something happens to you—what will become of your dream then? Without adequate life insurance, it probably will turn into a nightmare. When shopping for life insurance, you will be faced with a decision: term or whole life policy? Buying a whole life policy is like buying a house: as you pay the premium, you build equity in the policy. Buying a term policy is like renting: it is cheaper, but you build no equity. In this case, renting is probably better than buying, as rates for term life insurance are amazingly affordable. Even though you will not be building equity, the money you save is usually better spent in other areas of your business.
But Wait, There’s More!
These are only a very few of the types of business insurance to consider regardless of the size or location of your company. There are many others that can protect your business, such as product liability, life, and disability insurance.
Recently, Data Breach Insurance has become available. It can help cover the costs of a data security breach for things like identity protection solutions, public relations, and legal fees. This can include costs to notify customers and employees and restore your business’s reputation.
Be sure you have complete coverage from a reputable insurance company by talking with our friendly and well-informed representatives at Olson Insurance.
A Final Note
Obtaining insurance for your business is an investment that will help protect your business and your livelihood.
Let Olson Insurance help you find which policies align with how you run your business. Our insurance agents can help customize a package that will fit the needs of your business and give you adequate protection, without breaking the bank. We take pride in working side-by-side with our clients and providing outstanding customer service. Building a long-lasting relationship is our number one priority.