Business Owner Insurance Problems Solved

Business owner insurance generally covers you in three major areas: workers' compensation, property and liability. A law in every state in America requires workers’ compensation insurance. Property and liability coverage may not be required, but they protect you from having your life savings or business compromised by excess expenses or accidents. Insurance is complicated and can become costly. Address a few common problems to keep your coverage high and your expense low.

Paying Too Much for Coverage

Your business owner insurance expenses directly affect your business profit. If your coverage is too high, determine the cause of the problem rather than cutting coverage. High claims can increase your premium. Implement loss control practices to reduce claims. For example, if you experienced a costly sexual harassment lawsuit last year, review your company policy with employees. Beyond sexual harassment, you can educate your employees on workplace safety. Even in an office building, sitting correctly while typing can reduce time lost due to back injury or carpal tunnel syndrome. 

Unique Claims are Not Covered

Some industries face unique exposures. If your employees are exposed to hazardous materials or situations, you may have high claims. Construction sites, factories and environmental survey sites all face industry-specific claims. Internet businesses may experience losses from cyber-liability claims if the site is hacked. To protect yourself from these expenses, seek add-on lines. For a small premium each year you can protect these unordinary claims.

I Own a Home Business

If you work and live in the same space, business owner insurance is still applicable. Your insurance premiums will be tax-deductible even for your home office. Determine what percentage of your home is solely dedicated to your business. That percentage of your homeowners' insurance can be deducted. If you employ your family members, their health insurance will additionally be tax-deductible. When someone is injured working at your home business, your homeowners' insurance may not cover the claim. You should purchase workers' compensation lines for your employees at a home business.

I Have a Shared Workspace

Small businesses today often share common workspaces. Even if you rent a station at a shared workspace, do not neglect your insurance needs. Find out what claims are covered by the building owner’s property insurance. Theft, vandalism or fire may be covered. Do not overpay by purchasing business owners insurance for lines that are covered by your property owner. It is likely your rent reflects the cost of this insurance already. Learn about additional claims you will need to cover with an independent line and find a flexible policy for those.

blog comments powered by Disqus