What Is Business Insurance and What Does It Cover?

Business insurance is the safety net that keeps business operating smoothly. It helps protect profits by hedging against unforeseen circumstances.

Business insurance is a combination of different types of coverage that are designed to meet the needs of your business and protection criteria. These types include:

Liability Insurance: Covers the cost of legal representation and damages if you’re sued.

Commercial Property Insurance: Covers damage to any buildings and items that your business owns.

Commercial Vehicle Insurance: Covers company vehicles, including the vehicles of delivery drivers if they’re driving their own car while on the clock.

Inland Marine Insurance: Covers portable equipment like cameras, lawn mowers, golf carts, and more.

Worker’s Compensation: Covers medical costs for your employees if they’re injured on the job.

Director’s And Officer’s Insurance:  Covers legal costs for high-level employees and board members if they’re sued over their actions on behalf of your business.

There are many options for business insurance. Depending on your business’s size and niche, you can start with a small amount of coverage and slowly increase it as your business grows.

Why Is Business Insurance Important?

Business insurance helps your business stay solvent in a crisis. Even if you’ve got a sizeable emergency fund, if your business is leveled by a hurricane or fire (or your reputation is steamrolled by a lawsuit), your reserves will run out quickly.

Business insurance could pick up the tab in the following scenarios and many more:

• A customer lawsuit

• Inventory Damage by a cause outside your control

• A employee gets into a car accident while on the job

• An employee gets injured while at work

• A natural disaster causes damages to your property or equipment

Business insurance allows you to take care of your customers and employees in scenarios out of your control and maintain your image. It is a no brainer to prepare for the unexpected by covering yourself with business insurance.

Who Needs Business Insurance?

Business insurance usually isn’t a legal requirement, definitely not for small businesses just starting out. But it’s necessary to run a sustainable business as you scale.

If you’re seeking funding from a bank or from investors, then they will likely require you to have business insurance. They want to make sure they get paid even in an emergency. Business insurance ensures that you can do that.

If your business operates in a particularly dangerous or high lawsuit risk field, then it’s imperative to have business insurance to help protect from those risks. 

How Much Does Business Insurance Cost?

Costs range widely depending on size of the business. It could be a few hundred dollars per year to thousands or millions each year. The riskier your business, the higher your insurance premiums. Also, having more assets to protect will drive up the cost.

Save on Business Insurance

Many insurance companies sell business insurance tailored to specific niches. Amba Insurance does the shopping around for you in order to find you the best coverage. Being an independent agent, we can quote you coverage options from many providers, allowing you to obtain the best coverage at the best prices.

Amba Insurance is a small business itself. We know the insurance market inside and out and can help you find coverage designed for your business’s needs.