If you are a business owner, business insurance is generally necessary. However, navigating the process of offering business insurance for the first time is often challenging. If you're about to apply for business insurance quotes or are debating whether business insurance is really necessary, here's what you need to know.
What is business insurance?
Business insurance is a form of financial safety net that limits your out-of-pocket expenses should specific incidents occur while running your company. As the U.S. Small Business Administration (SBA) states, "business insurance protects you from the unexpected costs of running a business." This includes expenses related to "accidents, natural disasters and litigation" that are otherwise cumbersome.
Functionally, business insurance is an agreement between you and the insurer. In exchange for paying premiums, the insurer offers you coverage as specified in your policy.
What does business insurance cover?
As mentioned above, business insurance helps cover the costs of incidents that are listed in your contract. Typically, coverage is for accidents, lawsuits, and natural disasters. However, exactly what is included varies from one policy to the next and based on the type of business insurance you choose.
General liability insurance is usually the broadest coverage option, although it focuses on allegations of harm originating from outside persons or entities. Product liability insurance specifically covers damage caused by product defects, while professional liability insurance covers damage resulting from mistakes, negligence or improper handling of customer service. Commercial property insurance is usually required to protect company assets.
However, there are other options available in the market. In addition, you can follow the policies of the business owner. This policy type groups a group of coverage types into a single policy. As a result, it is potentially the most complex option.
How do business insurance quotes work?
Business insurance quotes are estimates of the premiums you will need to pay to get a specific type and level of coverage from an insurer. Usually, the process of accepting offers is straightforward.
First, you provide information about yourself and your business. Next, you review your coverage level options and select what you want to include in your policy. The company will then review the submitted information and provide a quote. In the menu, you will see a breakdown of the coverage you would receive and the amount you have to pay in premiums.
The time it takes to receive a quote may vary. Some companies can wrap things up in minutes, while others may take days or weeks.
Can you get business insurance quotes online?
Yes, you can get a business insurance quote online. There are several insurers and marketplaces that simplify the process. You fill out the online forms according to the instructions on the website. You can then submit your details and potentially receive one or more offers back within minutes.
