Starting your own business is an exciting time, but it comes with risks. You’ll want to protect the value of what you buy for your company and insurance can help do that when things go wrong such as fire or theft-related damages in addition to liability issues should someone sue -or threaten litigation over any injuries while working at one’s establishment.
- The value of the company assets you wish to insure.
- Number of employees.
- Specific risks associated with your industry.
- Your personal risk tolerance and the amount of liability protection you prefer.
Yes, you should include insurance expenses in your initial business plan and yearly budget. From a cash flow perspective, you’ll want to understand what kind of payment options and timing are available. When starting out, aim to separate your company assets from your personal items to determine the amount of insurance you’ll need to carry. To properly establish your new company, speak to a tax or legal advisor about formalizing the structure of your business.
The state only requires two forms of coverage: workman’s comp and commercial auto insurance.
Business insurance costs vary based on the policies you purchase and your coverage limits. Other factors include your industry, number of employees, revenue, and location. Small, low-risk businesses – especially those that qualify for a business owner’s policy (BOP) – pay less for insurance than larger companies.
Business insurance is considered one of the costs of doing business. That means you can deduct insurance premiums that serve a business purpose, such as your premium for general liability insurance or professional liability insurance.
Every business can save money on insurance. One of the best ways is to explore what different providers are offering. You can contact insurance companies directly and request rates, but you’ll have to provide your business details each time you apply.
