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Business Insurance 101: What You Need to Know

hiscoxThis guest post is courtesy of Hiscox Small Business Insurance, which offers professional services businesses a new way to buy small business insurance either online or over the phone from a licensed advisor in minutes. Rocket Lawyer has partnered with Hiscox to to make it easier for small businesses to protect their legal and financial interests. For more information, visit http://www.hiscoxusa.com/smallbiz.

By Mandy Minor

Insurance is a way of transferring risk from one person or organization to another and has been in practice in the U.S. since Benjamin Franklin started the first property insurance company in the country way back in 1752. While the types of insurance available have changed greatly over the centuries, especially over the past few decades, the need for entrepreneurs to protect their ventures has not. But, if you’re in the dark about business insurance don’t worry; we’ve got the basics covered.

Before trying to determine what type of insurance you need, partner with a company you can trust to help you.  Research online, ask friends and family for referrals, and vet each potential company or insurance agent with the Better Business Bureau.  Insurance is an extremely large and competitive marketplace, an expert insurer that understands the risks in your industry can help guide you towards the coverage you need–and steer you away from coverage that’s unnecessary for your business.

Of the many forms of insurance available there are some that all small business owners should consider:

  1. Professional liability, or errors and omissions (E&O)
  2. Commercial general liability and/or Business owners policy (BOP)

After you’ve secured the right coverages for your business in these areas you may want to investigate other insurance products, including umbrella liability, workers’ compensation (which may be required by law in your state), disability coverage and life insurance.

While it’s true that today’s ever-changing business landscape means your coverage needs may change at any time, having the basic policies in place and managed by an insurance agent or company will give you peace of mind and allow you to focus on what you do best: growing your small business.

Here’s a quick video that sums up the basics of business insurance for any small business:

 

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