Get Coverage That’s Just Right the Size of Your Business
The kinds and amounts of insurance your company needs depend on certain factors:
- The type of company you run
- Your location
- How many employees you have (if any)
Talk with your agent to determine your business insurance needs; they can help you examine your options. First, consider how large of a business you run. Definitions can vary, but they’re typically based on your number of employees, sales numbers, and total earnings. The sections below will help you pick the right category for your business.
Home Businesses
Do you run your business from home? Does your company support you – and maybe a few other people?
Many people launch successful business at home. Home business owners often have one (or zero) employees; they make relatively low revenues.
Low revenues don’t mean you shouldn’t insure your business. Every home business should have proper insurance coverages. The United States Small Business Administration (SBA) says at-home businesses make up over 50% of all American companies – far too many of these don’t have appropriate business coverage. Though home-based businesses typically operate as small businesses, their unique locations (in homes) may require owners to get special insurance coverage. Your homeowners insurance doesn’t necessarily protect your home business from property losses and liabilities.
Small Businesses
Does your company make a few million (or less) each year?
If this sounds familiar, you probably run a small (in the grand scheme of things) business. Your insurer will probably consider your company a small business if you have 50 employees or fewer. The SBA calls independent, for-profit companies that aren’t (yet) dominant in their fields “small businesses.” Typical small Business Owners Policies (BOPs) are usually only available to businesses with revenues below five million dollars and less than a hundred employees. Though you can get customized insurance for your specific business type, many insurers provide standard small business policy options so you can afford the protections your company needs to manage typical business risks.
Medium Businesses
When your business has grown and thrived, it will enter the “medium business” category. Insurers define business sizes in various ways; however, if you have fifty to a thousand employees and annual revenues in the ten million to one billion range, your insurer will probably call your company “medium-sized”. Insurers often offer special policies that specifically suit the needs of this segment; these plans typically combine liability and property protections. If your company maintains expensive equipment and spans multiple states, consider seeking out a special, customized policy.
Large Businesses
Large, complicated companies typically carry risks in the millions of dollars. Your company will need commercial insurance with custom coverages to meet its specific needs. Many large companies employ certain employees to examine the causes of potential accidents or losses. These risk management experts can recommend and implement preventive measures, create plans for minimizing damages and costs (if they occur), purchase insurance, and make claims on the company’s behalf.
If you own a home or small business, you’ll probably have to perform risk management evaluations on your own. However, small businesses sometimes hire risk management consultants. If you don’t know what step to take, ask your independent insurance agent to help you assess your business risk – no matter what its size!
Protecting your future
Whatever your needs, give us a call, have you been told you can’t insure your risk, been turned down, or simply unhappy with your current insurance? Since 1995 we’ve been providing coverage to our customers, and helping people across United States.
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