As a business owner, the level of insurance coverage you obtain is completely up to you; you, of course, will want to be sure you are adequately protected, while not paying for insurance that has no relevance to your business.

Take into consideration the following when deciding on the best coverage for your unique business:

Size:

Often, businesses will begin small – you may even have started your business from your home or garage. When entrepreneurs work from home, they often assume that their business assets will be protected by their homeowner’s policy; this is not, however, always the case. You may want to consider looking into “work-from-home” insurance policies. This type of insurance will be tailored to small, start-up businesses and have the basic level of asset and liability insurance. These policies are usually quite inexpensive.

Be sure to review your policy as your business grows to be sure you have the coverage you need. If you employ someone, your liability level increases; there is always a risk for human error, so you need to protect your customers as well as yourself and your employee(s). Workman’s compensation insurance is legislated for full-time employees in most states.

Type:

Businesses in different industries will carry varying levels of risk; naturally the insurance coverage should be tailored accordingly.

A good example is restaurants and bars: They have high volumes of people come through each day meaning that they need to have insurance that will cover equipment, food, customer and product liability, workman’s comp, and property insurance at the very minimum.

A manufacturing business won’t need to have food spoilage coverage, however they carry greater risks in terms of property, equipment and product liability as well as higher workman’s compensation risks. They would need more insurance in these areas, than, say, a completely service-oriented business such as a cleaning service.

Assets and Perceived Risks:

Consider the following two factors to determine the level of insurance you need:

Your assets – you’ll want to ensure you have your assets protected so you can continue to generate an income should your business have difficulties. This type of insurance is called business interruption and shouldn’t be overlooked.

The risks – the industry of your business or the region in which you conduct business may be susceptible to certain risks; find information from local industry associations or colleagues to help assess your insurance needs.

Most people would probably agree that the Aflac duck is adorable and a great marketing tool; what everyone can’t agree on is whether or not it’s wise to choose one of their many insurance policies.

Aflac, a Fortune 500 company based in Columbus, Georgia and founded in 1955 by the Amos brothers, Paul, Bill, and John, is available to everyone in the U.S. as well as various overseas markets. In fact, Aflac is the insurance of choice for a fourth of the households of Japan.

Aflac shares have been performing quite well lately, proving that the company prides itself on offering and providing high-quality products and services at competitive prices. Additionally, Aflac is consistently reported to be one of the -most employee-friendly companies, especially so for working mothers and minority women.

Aflac offers term life insurance, whole life, or a combination of both. You won’t be required to have a medical exam or blood tests when applying for insurance with Aflac, so the company can’t disqualify you based on your current state of health. The coverage you’ll receive will include a Waiver of Premium Benefit and an Accelerated Death Benefit.

Aflac consistently receives grades of A+ (the best being A++) from a variety of independent insurance rating companies. Generally speaking, Aflac shows customers as happy with the insurance coverage they’ve received; they like the flexibility of its plans and the quickness of fulfillment of claims.

Aflac carries a wide variety of insurance including long-term care, life insurance that can be used to care for your family should you die or as retirement income, insurance that will cover your expenses should you be unable to work, cancer insurance (not available in all states), and supplemental health insurance (to work in combination with health insurance you already have or to diminish the costs of healthcare if you are not able to afford regular insurance).

As a former Aflac salesperson, I can personally recommend the company if you have a need for unique coverage; excellent and affordable, Aflac can be a great addition to the coverage you already have.

Home-Based Business Insurance Decisions Are Important

When you are just beginning your home-based business purchasing insurance coverage for yourself and your family may not be one of your priorities but it is unwise not to make it such. If – or more likely WHEN – disaster strikes, having insurance will make the difference between your business’s success or its failure.

Though you may not require every type of insurance listed here, take the time now to consider your insurance needs; it will save you money as well as headaches down the road. Ultimately, the best way of determining your needs is to consult with an insurance agent. Explain the details of your business to him or her; he or she will then be able to determine what the best coverage will be for you and any employees you may have.

Health Insurance:

Your first consideration should be health insurance. If you have recently left an employer, you might be eligible for COBRA, which can provide temporary interim health coverage for those who are between jobs and would otherwise be without insurance.

Disability Insurance:

Disability Insurance guarantees that you will have some amount of income if you suddenly become unable to work due to an accident or illness. Individuals often feel that the peace of mind they receive from having this type of insurance is well worth the cost of such a policy.

Life Insurance:

Life Insurance ensures your family has money if you die suddenly. There are lenders who require you to have life insurance prior to lending you money; this guarantees repayment of the loan should you die unexpectedly.

Business Property Insurance:

Business Property Insurance protects you should you have a loss of inventory or equipment. If your business suffers loss due to flooding, fire or another disaster, business property insurance allows you to recoup your losses.

General Liability Insurance:

You will need to have General Liability Insurance for your business if you plan to have customers or clients come to your home. This type of insurance protects you should someone visiting your home be injured while on your property. It will typically pay your legal defense fees as well should you be faced with a lawsuit as a result of the injury.

Business Interruption Insurance:

Business Interruption Insurance helps your business recover from natural disasters by covering the income you would lose and paying the operating expenses that continue to accrue during such a time of crisis.

Workers’ Compensation Insurance:

Workers’ Compensation Insurance is absolutely necessary if you plan to have employees. Without it, you would be responsible for the medical expenses that arise from injuries sustained by your employees while working. Mistakenly, many business owners believe that they only need workers’ compensation insurance if they are employers of “dangerous” workers (construction workers, electricians, etc.) or if their employees work at a commercial office or retail location (somewhere other than their home).

These types of insurance will help ensure that you are prepared for any type of accident, disaster or crisis that may come your way as a business owner. By preparing yourself, you will save yourself and your company from significant financial loss in the end.

Business Insurance

There are, as most of us are aware, myriad types of insurance to consider when thinking of what type is right for your particular business, some, of course, being more important than others.

Some common forms of business insurance include:

1. Worker’s compensation
2. Malpractice and errors and omissions coverage
3. Disability insurance
4. Liability insurance that covers premises, activities, and products
5. Business interruption insurance
6. Unemployment insuance
7. Surety and performance bonds

One particularly important type of insurance is Worker’s Compensation; any business that has employees is required by law – in every state – to have Worker’s Compensation coverage; this type of insurance will benefit an employee who becomes injured on the job while performing the requirements of his or her position. In most states, Worker’s Compensation insurance is available through private insurance companies, but in a few, the coverage must be purchased through an agency of the state’s government. Oftentimes, there are contractual requirements that mean businesses must carry certain types of insurance. You will need to personally find out what the requirement of your state is.

Disability insurance and unemployment insurance are also types of coverages that are required by law. Each state, of course, will have varying requirements, so it is best to check with your insurance company or government office to determine your business’s exact needs when it comes to these required coverages.

When entering into a contract or lease, your business should carefully review them for any insurance requirements; if a business borrows money, it is often required that insurance must be maintained in an amount sufficient to cover office equipment leases, property, and liability exposures. Should you fail to acquire the necessary amount of insurance, your contract or lease could be terminated.

It is generally advisable that businesses purchase liability insurance to cover any business-related activity and be specifically tailored to the type of business you’re conducting. Professionals who are likely to face greater levels of legal liability, such as architects, engineers, dentists, and healthcare workers are especially advised to obtain business liability, or malpractice, insurance.

Whether or not you need a particular type of insurance will depend on the activities of your business as well as the amount of liability exposure that your particular company is likely to have. It is always best to contact your business’s insurance company or a local provider of insurance to assure you have all the coverage you need.