FAQ's About Business/Commercial Insurance

Below are frequently asked questions about business insurance. For more technical questions about business or commercial insurance, a customer should speak with their insurance agent.

• We just started our company and it's fairly small, when should we purchase insurance? It is not recommended to operate a business without first purchasing insurance. Insurance protects against exposure to risk. The first day a business opens it doors, provides a service or sells a product, there are always risks involved. The last thing a business owner would want is an on the job accident to happen without adequate coverage. Each state operates differently in regard to commercial business insurance. A business should contact their states insurance department for laws when running and operating a business.
• What types of coverage do I need for my business? Depends on the type of business you run, where you run your business, amount of assets the business has, buildings, equipment, furniture, money, buildings, leased equipment, employees and other factors. An insurance agent will make sure the business owner lists all applicable items when filling out an application for a business quote and answer all questions.
• What happens if an accident happens and someone sues my business? Lawsuits are very common these days and if your busienss is not properly covered, it could spell trouble for you. By purchasing liability insurance, it will protect the business assets when your business caused negligence, cuased personal bodily injury or property damage to someone else. Very coomonly these policies will have a minimum of $1,000,000 of coverage. Excluded from general liability insurance can include cases of discrimination, wrongful termination or harassment.
• What happens if one of my employees gets injured on the job? Depending on your businesses state laws, it may be a requirement that your business carry an additional policy to general liability. Many states now require every business to carry a workers compensation policy. There are some businesses that can be excluded from this insurance depending on number of employees and type of business.