Business insurance

Business Insurance Terminology

A business insurance form.Binder
A document issued by an insurance company that acts as temporary evidence of insurance coverage for an applicant before a policy is issued

Mitigate risk
To lessen the impact of potential hazards, such as a fire, theft, or security breach

Package policy
Several separate business insurance coverages bundled into one and sold as a single unit

Rating bureau
An organization such as the Insurance Services Office (ISO), that provides pooled industry data to small or specialty insurers that helps them develop rates and estimate costs associated with settling claims

Risk management
A process designed to systematically manage an organization’s accidental losses

Business Insurance: Essential To Your Success

Your assets. Your reputation. Your customers. Lawsuits are on the rise, and without the financial protection that business insurance provides, you risk losing everything you’ve worked so hard to build. Don’t take that chance. Protect yourself, your employees and the investment you’ve made in your company.

As a business owner, you assume a certain amount of risk just by the mere fact that you provide goods or services to the public. Take this scenario, for example: A customer is injured on your property and consequently names you in a lawsuit.  All it takes is one unhappy customer and your business could take an overwhelming hit.

Business insurance helps manage these types of risks and protects your assets against losses like these that could be devastating to your bottom line. That’s why making insurance part of your overall business plan is essential to the financial stability of your company.

The Insurance Information Institute recommends that every small business — at a minimum — should carry the following types of insurance1:

  • Property
  • Liability
  • Business auto
  • Workers’ compensation

In addition, you may want to consider other types of insurance, including:

  • Business owners policy
  • Umbrella liability insurance
  • Errors & omissions coverage
  • Group health insurance

Position Your Business For Growth

Whether you are a sole proprietor and work out of your home, or you own a multi-location business with many employees, making sure you have the right business insurance built into your business plan is key. Consider:

  • What would it cost to replace your company’s assets, such as business equipment and inventory?
  • How much can you afford to pay for a deductible?
  • Could you reduce your premiums by taking loss-prevention measures such as installing security cameras on your property or providing workplace safety courses to employees?
  • Will you save money on premiums if you combine multiple types of business insurance into one policy?
  • Do you have enough business insurance protection to meet your state’s coverage requirements?

To build business insurance into your company’s long-term growth strategy, consult with a trusted business insurance agent to develop a plan that not only provides the coverage you need today, but can also easily expand to grow with your organization.

The information contained herein is being provided as-is and without representation or warranty. The enclosed information is not intended as legal, tax or financial planning advice. Any discussion of tax or accounting matters herein (including any attachments) should not and may not be relied on by any recipient or reader. The recipient/reader should consult his/her tax adviser, legal consultant and/or accountant for a statement of tax and accounting rules applicable to his/her particular situation and for all other tax and accounting advice.

1Insurance Information Institute. Small Business Insurance Basics. February 7, 2008. http://www.iii.org