Knowing Which Insurance Fits Your Business
When starting your business, there are lots of things to worry about that demand quite a bit of attention. Arguably the most important is what type of insurance you need for your business. If you’re looking for small business insurance in Arizona, it is crucial to know the various characteristics of different coverage types and what each type covers. This allows you to get the best insurance for you and your business.
You might be asking: Why does it matter what kind of insurance I get?
Getting the wrong insurance for your small business could potentially require you to pay more than what you would if you had the type that covers what you need. Depending on the state you live in, you could be required to have certain types of insurance like Workers’ Compensation. Knowing what type of coverage you need, and what type is mandatory can save you the extra stress, time, and money that could be spent towards other aspects of your business. Let’s look at the different types of insurance.
Small Business Insurance
Liability Insurance
Business Owner’s Policy Insurance
Small Business Insurance
If you’re looking for small business insurance in Arizona, you’ll see that this coverage can help cover costs of property damage and liability claims. Without this type of insurance, if you were to run into a liability claim you would have to pay out of your personal funds and or funds for your business. These costs can sometimes be substantial enough to completely wipe out a business. Can you afford not to have this coverage? This coverage also can replace lost income in a situation where your business cannot operate temporarily because of a covered incident. Commercial auto, commercial umbrella, commercial flood, commercial income, and workers’ compensation are all different coverages that small business insurance covers. You can also opt to add the coverages you need to avoid paying for ones your business will not use, such as flood coverage. If you don’t live in a flood plain area, for example, you may not need it.
Liability Insurance
People often wonder if they need liability insurance because they “have never had an accident before”. It is always better to be safe rather than sorry! The truth is, you just never know when something unforeseen will happen. This type of insurance has two forms: general and professional liability. General liability helps against claims made against your business for property damage or bodily injury, such as if a customer slips and falls on your property. Professional liability covers the costs for resolving claims that your business made omissions or errors in the services or products you provided.
Business Owner’s Policy Insurance
Arguably one of the most popular packages for small business insurance, the Business Owner’s Policy – BOP – combines property insurance, general liability, and business income insurance into one policy. You can often receive a nice discount when you choose a packaged policy as opposed to paying for all three separately.
Benefits of Packaged Policy Coverage
A BOP may be the most convenient option for your business because it combines all the main coverage types into one simple policy. Remember: buying policies separately can cost more than buying a packaged policy. Due to the greater convenience and lower cost, packaged policies are extremely popular with small business owners. Managing multiple coverages in one single policy makes it more convenient, which in turn, makes it less stressful.
Concerning the type of insurance that is right for your small business, there is no such thing as being too careful. Contact us today with any questions you may have about which type of AZ small business insurance is right for you!