Everything You Need to Know About Business Insurance

As a business owner, you have a lot to think about every day. There's so much to consider to ensure your business finds success in its market, but are you well prepared for a fire, flood or natural disaster? What about theft or personal injury? Unforeseen losses impact small businesses far more than larger companies. You'll need an insurance strategy that provides reliable coverage so you can focus on what you do best.

4 Essential Types of Business Insurance

There are four common types of small business insurance you should keep in mind:

1. General liability insurance: Covers expenses if you, an employee, a product or service inflict personal injury or property damage on a third party.
2. Property insurance: Covers the replacement of your building or valuable assets like equipment, computers, tools or inventory in the event of theft, vandalism, fire or flood.
3. Business interruption: Covers financial losses if you're unable to conduct business for a given period after theft, flood or another unforeseen loss.
4. Vehicle coverage: Covers expenses related to the vehicles your business owns or leases for work in the event of a collision or damage.

Business Owner's Insurance Policies

Business insurance is a necessity in most cases, so choose the right solution for your needs and budget. A few key factors influence the rate you'll pay for an insurance premium, including the type of business you own, your location, your gross revenue and the types of coverage you need. You'll receive the greatest value for your insurance coverage with a business owner's policy (BOP).

A BOP provides comprehensive coverage within a customizable bundle so you receive the protection you need at a price you can afford. Most BOPs include:

• Business interruption insurance.
• Crime insurance.
• Liability insurance.
• Property insurance.
• Vehicle coverage.

Insurance for Home-Based Businesses

If you run a business out of your home, you're in a unique insurance situation.

Instead of filing for a completely new policy, you can apply for business insurance as an add-on to your homeowner's insurance. Add-ons or riders are cost-effective solutions for sole proprietors or solopreneurs with a small amount of valuable equipment or inventory.

As an alternative, in-home policies provide more coverage than riders or add-on policies. The cost may be higher, but you'll have greater protection against injury, theft, disasters and other risks.

Final Tips

At the end of the day, insurance is important for every business, regardless of your profit margin. Risks and losses could be far more substantial than the fees you'll pay for an insurance policy. Keep in mind that your insurance premiums are likely to qualify as tax write-offs at the end of the business year.

Learn More With First Commonwealth Bank

At First Commonwealth Bank, we work hard to help small business owners navigate complex financial situations, so count on us for all of your business insurance needs. To learn more about insurance for small business owners and other useful financial resources, we encourage you to contact our insurance team in your area today.

Note that the resources listed here are meant solely as overviews and helpful information. Please consult experts regarding your specific security needs for your business.