3 Important Facts That You Should Know About Business Insurance

Insurance Blog

If you are starting a business or already have one that's up and running, you should have business insurance to give your company additional protection. Business insurance is just as important as the insurance that you have to cover your vehicle, home, and health and can save you from major financial losses. If you don't know a lot about business insurance, you can review these facts to become better informed about this coverage.  

1. You can choose from multiple types of business insurance policies.

Business insurance isn't a one-size-fits-all type of plan, and you can choose from multiple policies to get the right amount of coverage that you need. You can get a comprehensive policy that covers many aspects of your business or separate policies that offer limited coverage. You might be able to save money by enrolling in multiple plans. Some of the different types of business insurance policies include:

  • Property insurance
  • Health insurance
  • Lost income coverage
  • Data breach coverage
  • Workers' compensation insurance
  • Liability insurance (to cover the company, employees, or products)

2. Business insurance is especially important for new businesses.

If you're starting a business, you might want to skip getting insurance to save money or put off getting a policy until your company starts to generate consistent profits. However, if something goes wrong and a lawsuit is filed against your company, you could be put out of business quickly if you don't have an insurance plan. Some new businesses don't generate large profits for the first two years after opening, and you might be forced to shut your business down if you haven't earned enough money to pay the lawsuit amount if a judgment is ruled against you.

3. Business insurance usually qualifies as a tax deduction.

In most cases, you can save money on your business taxes by claiming your business insurance as a tax deduction. However, the IRS might not allow you to deduct your business insurance if your coverage is considered to be unusual or unnecessary. The IRS may also forbid you from claiming deductions for sickness, disability, or life insurance claims that caused you to lose earnings. 

Business insurance should be considered a necessary business expense if you want to continue to operate your company for as long as possible. An insurance agent can explain more about how business insurance works and enroll you in one or more business insurance policies that will help safeguard your business even through the toughest times.

Contact a local business insurance service to learn more. 


28 October 2022

Finding Better Insurance

I have always been someone who loves to work hard for what they have, which is why I started paying attention to how I was protecting my investments. I realized that although I had great medical and dental insurance, my car needed a little extra protection. I started working hard to find an insurance policy that would work well for my needs, and before I knew it, I was able to sign up for a new policy. This blog is all about choosing a car insurance policy that works well for you and your family, so that you don't have to worry about falling short.