What Is Business Insurance? What Does It Cover?

Business insurance considers the unique set of risks belonging to every commercial operation to protect businesses from financial loss.
Coverage includes insurances for product liabilities, general liabilities, professional liabilities and malpractices, cybercrimes, commercial vehicles, and loss of income, among others.

Do I Really Need to Insure My Business?

As a small business owner, you might already have the passion and drive to face new challenges. However, taking on this degree of risk also means you’ll need to protect the worth of all the investments you’ll make for your company.
Insurance will have your back if things go wrong, and you’ll gain peace of mind and confidence in your role as an entrepreneur.

How Much Does Business Insurance Cost? How Can I Save Money on It?

Several factors will affect the total cost of business insurance, as it depends on the type and size of the business and the coverage needed for the commercial operation.

Usually, business insurance coverage costs around $200 per month, but a larger company with more employees and potential risks will inflate this sum substantially.

You can decrease these costs with effective risk management practices and comparing fees from different insurance carriers before purchasing.

When Should I Buy Business Insurance?

It’s a good idea to secure your assets from the beginning. Some other best times to consider insuring your business can be when you hire or lay off employees, relocate your business, or significantly increase or decrease your income.
To better understand specialized coverage options and their respective fees, please contact an IMA select representative in your area.

What Are the Different Types of Business Insurance Policies Available to Me? Which One Should I Choose for My Company’s Needs?

Many small businesses opt for Business Owners Policy (BOP). A BOP covers property damage and business interruptions and provides liability insurance for your business.
In addition to the BOP, you may need health insurance, cyber insurance, or commercial auto insurance, depending on the kind of work you do and your company’s size and location.

Who Is Covered Under My Business Insurance Policy? Just Employees, or Also Customers and Clients Who Visit My Office or Store Premises?

Besides covering any third-party liability claims for injuries to other people, liability insurance will shield professionals against loss due to negligent, wrongful acts.
In addition, commercial insurance will protect your employees when they get ill or incapacitated while on the job.
Last but not least, it will also safeguard you, your potential losses, and your business’s assets.

Are There Any Tax Deductions Available for Businesses That Purchase Commercial Insurance?

As long as the insurance is working towards covering a business, profession, or trade, there are tax deductions available.
However, a company may not deduct their commercial insurance premiums if it’s meant for a self-insurance reserve fund or the loss of earning insurance policy.

At IMA Select, we believe that you deserve the polished assurance that comes from mature decision-making and by your side-attention. We are an educator for your workplace and wealth. If you have any questions about more information on getting insurance, please contact an IMA Select representative in your area.