There are many risks involved in running a small business. Business owners are responsible for the well-being of their employees and customers. Even minor incidents can result in a major disruption or loss.
One way owners can mitigate these risks is with a business insurance policy. The right coverage will offer protection that is unique to the needs of small business owners.
At Wallace & Turner Insurance, we’re committed to providing transparent and trustworthy service to our clients in Springfield, Ohio and the surrounding communities. That’s why we created this list of frequently asked questions about business insurance for small business owners.
Our agency offers a range of customizable commercial policy options for small business owners in Ohio. Contact our Urbana and Springfield insurance agents for more information, and keep reading to get answers about small business insurance.
What is business liability insurance?
General commercial liability insurance protects a company from costs associated with customer injury and property damage. This can include legal fees, fines, penalties, and other costs pertaining to lawsuits.
Liability coverage can provide protection in the following situations:
Customer, employee, subcontractor, or other third-party injuries. If someone suffers an injury on your business property, commercial liability coverage will cover the costs of their medical expenses, and your legal expenses if the injury results in a lawsuit. This can also include emotional distress, even if no physical harm was done.
Third-party property damage. If a customer’s belongings or property are damaged as a result of your business operations, liability insurance will cover the costs associated with repairs and replacements.
Product liability. If a third-party is injured due to your product, general liability can cover costs associated with legal issues.
Advertising injuries. If your business is involved in a lawsuit for libel, slander, copyright infringement, malicious prosecution, or other advertising disputes, this coverage can help with the legal expenses.
Why do I need business insurance?
Commercial insurance is a critical support system for all businesses, but especially for small businesses. Small business owners can be held liable for any minor accident, dispute, conflict, or incident that involves their company, which poses a serious risk.
The cost of lawsuits, medical bills, loss of revenue, commercial auto accidents, property damage, and any other incident could be catastrophic.
Most commercial policies can be customized to suit a wide range of needs. Depending on the size and type of business you operate, available coverages can include the following:
These protections are critical for all small businesses, but especially if you manage a team of employees, own or lease a commercial space, own and operate business automobiles, or offer counseling and expert advice.
What does business insurance cover?
The needs of all businesses are unique. For that reason, insurance policies can be customized or bundled to suit the type and size of the business.
In general, most types of commercial insurance fall into two main categories:
Liability: These policies offer protection from third-party accusations of damage, injury, and loss.
Property: These policies provide coverage for repairs and replacements when items, buildings, or property face damage, theft, and any other loss of value.
Commercial business packages allow business owners to bundle multiple protections in a single policy, allowing for more comprehensive protection.
Is business insurance required by law?
Ohio businesses with employees are legally required to have workers’ compensation insurance, to cover employees’ medical bills and disability payments if they are injured at work.
If you drive a car, truck or van as part of your business operations, you’re required to have commercial auto insurance or qualify as a self-insurer. This is to protect customers, business owners, and employees.
What types of business insurance do I need?
The type of insurance recommended for a small business varies based on the size and scale of the business as well as the type of services or products being offered.
Aside from the federally and state-mandated business insurance requirements, it’s a good idea to get coverage for multiple areas of your business. For example:
Tools and equipment insurance is recommended for contractors or anyone who works with tools.
Liquor liability insurance is essential for any business that serves or sells alcohol.
With cyber attacks on the rise and small businesses being a prime target, cyber insurance is becoming increasingly important.
If you’re unsure of which type of insurance is best for your small business, speak to one of our agents to learn more.
How much is business insurance in Ohio?
There are a variety of factors that affect your business insurance costs. The main influences are your profession, how many employees you have and your coverage needs.
Profession: Not all businesses carry the same amount of risk. Contractors, tree trimmers and similar companies using heavy equipment and power tools frequently on other peoples’ properties are higher risk businesses. This increases the business’ exposure and owners should consider more comprehensive coverage.
But just because you don’t operate heavy machinery in your business, doesn’t mean you don’t need full protection. A home-based business offering financial advice has different risks and may need to carry professional liability insurance.
Number of Employees: The more employees you have, the more likely there is to be an accident. Businesses that have 25 employees will pay more for insurance than businesses with two employees because there is greater risk for a claim.
Coverage Needs: Your premium will be affected by the amount and type of coverage you purchase. An independent insurance agent can work with you to identify a policy that fits your needs and budget.
Where can I get cheap business insurance?
While finding low-cost insurance is attractive to any small business owner, you need to strike a balance between an affordable price and the coverage you actually need. If a significant loss occurs and you find yourself underinsured, you’ll likely end up spending much more than you were saving, or worse, your business could be at risk for bankruptcy or shutting down if you can’t afford to cover the costs. Rather than focusing on “cheap” insurance, find a policy that is both affordable and provides the right amount of coverage for your small business.
Is business insurance tax deductible?
Since business insurance is considered a business expense, it is tax deductible. Any premiums you pay for both the legally mandated and additional coverage options you choose are deductible from your business income.
Get small business insurance with Wallace & Turner
Business insurance is a critical support system for all small business owners. Having a comprehensive policy could make a major difference in the event of an accident, catastrophe, or another incident.
At Wallace & Turner Insurance, we protect what matters to you. As one of the most established independent insurance agencies in Ohio, we are dedicated to providing the best insurance coverage to our clients in Springfield, Urbana and surrounding communities.
Contact us to obtain a free quote and to learn more about how our business insurance coverage can provide you with the ultimate protection so you can focus on doing good work.