As a business owner, you understand the importance of preparing for everything. Even the most careful of companies will face some amount of risk. However, with the right amount of commercial insurance, businesses have a safety net against financial loss.
Muller Insurance is an independent agency with over 118 years of experience in the insurance industry, serving New Jersey, New York, Connecticut, and Pennsylvania. Here, we guide you through the basics of what business insurance is, what it covers, and how to determine your company’s insurance needs.
Types of Commercial Insurance
Almost every business faces certain common risks. All businesses own property; all businesses are vulnerable to lawsuits; all businesses lose profit in a shutdown. The standard business owner’s policy (BOP) combines three basic coverages into a convenient package:
- Property insurance: This policy covers fire damage, vandalism, or theft of your business’s physical assets, such as your building, equipment, and inventory.
- Business interruption insurance: In the case of a shutdown due to causes covered by property insurance, this policy compensates you for lost profits.
- Liability insurance: If a lawsuit is brought against your company for bodily injury or property damage, this policy covers legal fees and indemnity.
Certain businesses face risks not covered by the standard BOP. Depending on your business, you may want to purchase additional types of coverage to protect against these risks. Specialty business coverages include:
- Workers’ compensation: Required in most states, workers’ compensation covers medical bills, rehabilitation, and lost wages for employees who become injured or ill on the job.
- Commercial auto: If your company owns and uses vehicles for its day-to-day operations, commercial auto insurance is essential in case of vandalism or an accident.
- Flood: Standard property insurance does not cover damages from flooding. If your business is in a flood zone, you may want to invest in additional flood insurance.
- Liquor liability: If your business serves alcohol, liquor liability covers lawsuits that arise when intoxicated patrons cause damages to others.
- Professional liability: Also called errors and omission, this type of policy covers lawsuits for damages caused when your company provides faulty service or misleading information.
- Umbrella insurance: An umbrella policy provides additional coverage against situations your standard liability policy won’t cover. Umbrella insurance can be tailored to fit the business.
Some agencies offer combined insurance packages tailored to a specific business type. For example, restaurant insurance bundles the standard BOP with workers’ compensation, liquor liability for locations that serve alcohol, and commercial auto insurance for caterers.
Calculating Your Commercial Insurance Needs
Every business is unique. The type, and degree, of risk your business faces depends on a variety of factors. Weigh these questions carefully when determining how much insurance your company needs:
- What type of business do you have? Restaurants, nail salons, and construction contractors will all face different types of risk in day-to-day operations.
- How big is your business? The more extensive your operations, the more risk you may incur.
- Where is your business located? Properties in flood or fire zones are vulnerable to damage. Construction lots and manufacturing plants are more dangerous to visitors and employees.
- What property does your business own? If your business uses special equipment or decorates with valuable antiques, you may want additional coverage.
- How many employees do you hire? More employees mean a higher likelihood that one of them becomes injured or ill while working.
- What is your annual revenue? Your revenue will influence the level of insurance you can afford.
Purchasing commercial insurance is not a one-time decision, either. As your business grows, the answers to these questions may change. You may find that your insurance needs also shift. By monitoring your business, you can track these changes and update your policies accordingly – ensuring that your business is always adequately protected.
Hiring an Independent Agency
Though it’s important to make sure your business is fully covered, all these different policies can quickly add up in cost. Every expense matters to your budget. This is why we recommend partnering with an independent agency. Because independent agents are not associated with a specific insurance provider, they can shop around between multiple providers to help you find the best value.
Muller Insurance has operated independently for over a century. We pick and choose policies from over 25 different providers, including top names like The Andover Companies, Cumberland Mutual, N&D Group, and Amtrust Financial. We also give your business close attention. By understanding your business needs, we can help you select an insurance package that fits.
Protect Your Business with Commercial Insurance
For more information about commercial insurance, reach out to Muller Insurance today. We are based in Hoboken, NJ, serving over 25 states across the country. To learn more or to request a quote, contact us or call 201-659-2403.
