If you’re reading this, chances are you’re an experienced business owner. You don’t need our help making your business amazing, but we’d love to help you protect it. This quick guide can help.
BOTTOM LINE: WHY BUSINESS INSURANCE?
That’s easy—it’s designed to keep you in business. When certain losses come along, you can dodge bankruptcy and stay on top of your game. There are several types of coverage to head off the high costs of everything from property damage to legal claims to employee injury. (And some of them can be bundled together to save money.
WAIT! DOESN’T MY LLC ALREADY PROTECT ME?
If you’re operating your business as an LLC (Limited Liability Company), your personal finances will be protected from lawsuits. If a customer slips and falls in your business, you won’t have to pay medical expenses out of your own pocket. But your business will still be on the hook and could be bankrupted without insurance.
AM I REQUIRED TO CARRY IT?
In many cases you are. Most states require you to carry Workers’ Compensation if you have employees. And landlords, vendors and other partners usually require you to carry General Liability insurance before they’ll enter into a contract with you.
WHAT’S RECOMMENDED FOR MOST BUSINESSES?
Every business is different, so this is only intended to start the conversation! The most commonly purchased types of coverage for a new or growing business include:
- Business Owner’s Policy (BOP)combines three important types of coverage to save you money: General Liability, Property and Business Interruption. A BOP covers property damage or personal injury that occurs in your space or while you’re doing your work, as well as damages (such as copyright violation) stemming from your communications. It also helps you replace lost or damaged property and recover the costs of lost work time. Also, we think “BOP” is fun to say. We won’t judge.
- Cyber covers costs associated with a data breach or other cyber attack, including repairs, legal judgments, regulatory fines and more. Do you take credit cards and store sensitive information? Cybercriminals are increasingly noticing you. (As recently as 2016, 40% of all cyber incidents targeted small businesses). Cyber coverage helps you:1) Rebuild your network2) Compensate and reassure customers 3) Pay for crisis management
- Workers’ Compensation covers lost wages and medical benefits to your employees injured on the job. Did you know this coverage also protects you by shielding you from most employee lawsuits? This is legally required in most states if you have employees.
- Commercial Auto covers your company-owned vehicle if it causes bodily injury or property damage. Legally required in most states if you use a business vehicle.
BUT MY BUSINESS IS SPECIAL!
Of course, insurance isn’t one-size-fits-all. Your industry or business model may benefit from specialized coverage. A licensed agent can ask you questions and help you figure out the best plan to protect the one-of-a-kind business you’re building with your time, energy and passion.
ONCE I’M COVERED, CAN I FORGET ABOUT INSURANCE?
It’s a good idea to review your business insurance needs every year before you automatically renew your expiring policy. Check with a licensed agent to see if you can get better coverage for a better price, especially if you have no claims. You may also need new or different coverage if:
- Your revenue suddenly jumps with your business
- You make a change in operations (such as introducing a new product or service)
- You enter into a contract
- You put on a special event (hint: anything to do with bouncy houses or beer)
- And other special circumstances – ask a licensed agent
HOW CAN LEWER+MYLO HELP?
Lewer has a 60-plus year track record of connecting people and businesses to the right coverage. When it comes to your business insurance needs, we don’t play favorites. We work hard to give you an objective recommendation. At no charge to you, we promise to:
- Get to know you and your business
- Recommend the exact solution for your needs
- Shop for you from over 100 top carriers for the best price
- Keep you feeling confident about growing your business!