Whether you own a business or are a patron of one, knowing the basics of business insurance is helpful. Not only does it protect the company, but business insurance also protects owners financially.
Business insurance policies differ depending on the business type, location, and whether or not you have employees. Accordingly, insurance agencies also offer policies based on your needs and your budget.
Below are the different business sizes to help businesses acquire the appropriate insurance.
- Home-based Businesses require little to no employees and earn relatively small.
- Small Businesses typically have at most 50 employees and earn less than a million dollars a year.
- Medium-sized Businesses usually have 50 to 1,000 employees and earn up to $1 billion.
- Large Businesses have 500 or more employees. Revenue requirements vary depending on the type of business.
Business Insurance Basics
Ensuring that you have enough protection and coverage is crucial, especially when the business is just starting. Business insurance policies offer a safety net for risks entrepreneurs commonly face.
Below are some of the types of business insurance that providers typically offer.
Business Owner’s Policy (BOP)
BOPs typically cover the riskiest business elements for entrepreneurs. General liability protects the business owner from lawsuits in cases of injury or damage. Commercial property coverage covers losses and damages resulting from theft or fire.
Business Interruption Insurance
In case the property damage covered by the BOP causes delays, and income losses, business interruption insurance provides protection. It gives business owners the safety net they need for when they can’t run the business as usual.
Errors and Omissions
Professional service businesses typically use errors and omissions coverage. This type of coverage protects against lawsuits resulting from errors and negligence by the company.
Businesses are more vulnerable to cyber-attacks due to prevalent internet use. Cyber insurance gives businesses security against data breaches and cyber-attacks. It could also protect in case the business owner receives a lawsuit.
Being an entrepreneur is a risk in itself. Of course, having no insurance in place makes business owners more vulnerable. Business insurance ensures that risks are lowered and gives protection in more ways than one.
At Old Bay Insurance Agency, Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (410) 777-5390 or Click Here to request a free quote.