Business Insurance 101: What Coverage Do You Need? | AllBusiness.com

Having the right business insurance does more than just give you peace of mind; it’s an integral part of an overall management strategy to help you stay competitive and protect your company in the event of an accident or disaster. While many small business owners seek to get away with minimal coverage, others overpay on insurance they don’t need. You can avoid both of these extremes by first educating yourself about business insurance 101, then consulting a business insurance expert to advise you about the right coverage for your situation.

Although at first paying business insurance premiums might seem like a burden, the real question is, can you afford not to have adequate coverage? You never know when a natural disaster will strike, or if an employee will have an accident in a company vehicle. It’s better to be prepared than to be hit with a large bill after some catastrophic event takes place. (Just look at the aftermath of Hurricane Katrina had on businesses that were located in the Gulf region. Would your company have survived such a natural disaster?)

When considering your business insurance needs, ask yourself these questions:

Business insurance 101: Types of business insurance

Here are some of the basic types of business insurance that are available:

Consult with a knowledgeable business insurance broker before purchasing any policies. If you are just launching your business, make sure you have adequate coverage before you open your doors. If you have an existing business and have not reviewed your business insurance needs for some time, schedule an appointment with your agent or broker as soon as possible.