When you decide to take a leap of faith and start your very own small business, going without insurance is not an option. Exploring options to find the best coverage will protect you in the long run. Various state laws can influence different types of business insurance to protect you, your workers, and the company you worked so hard to construct; and they can mandate certain types of business insurance as well.

The Various Types of Small Business Insurance Required by Law:

Workers Compensation: This is a very important type of coverage that pays for medical care and ongoing treatments for employees who undergo sickness or are injured on the job. It also includes the very important additive of lost wages compensation, and will also provide the necessary final expense and very needed survivor benefits for a worker’s family if the employee dies because of job-related illness. Most states are required to provide Workman’s Comp as a benefit. 

Disability Insurance: This is a very crucial stronghold that will pay employees a portion of their wages if they are unable to work due to something that isn’t work related. It may be a requirement for you to hold, as it is a valuable policy. 

Unemployment Insurance has gotten more of a spotlight over the last two years during the pandemic. Each state administers its own unemployment insurance program that adheres to guidelines put forth by federal law. This is predominantly funded by money paid in payroll taxes. The majority of today’s benefits begin to kick in much faster when the termination begins at no fault of the employee.

Professional Liability Insurance will provide immediate aid if you make errors in your profession. Lawyers, real estate agents, and doctors are all included among those who need to purchase liability insurance.

Commercial Auto Insurance is a necessity for anyone who runs a business with a company vehicle or fleet of vehicles. This is one of our specialty areas at the Alexander Insurance Agency, as we have helped many with policies to be the best in fleet convey services along with rapid delivery and fulfillment! 

Other Types of Small Business Insurance:

There are several other types of coverage you’ll want to consider even if you consult with us and find that they are not mandatory. You never know when unforeseen events could drastically alter the day-to-day operations of the entity you worked so hard to begin!

  • General Liability Insurance will cover your business if there are claims of property damage or bodily injury from customers. If you opt out of this form of coverage, you will also be responsible for paying for the resulting damage and medical expenses on your own. This is one of the best forms of a safety net that exists, as it can kick into your defense and pay for judgments, settlement rulings, and legal fees if anyone sues you.
  • Commercial Property Insurance will kick in and pay for damages to the property needed to run your business. It will cover things such as your vital equipment, computers, furniture, inventory on stock, and sign posts. 
  • Product Liability Insurance will provide coverage for you if a product isn’t functioning correctly upon arrival, or if it causes issues such as an allergic reaction or harm to a valued and paying customer. This is beneficial to any business that deals with food, clothing, car repair or even wellness.
  • Cyber Liability Insurance will cover costs if your valuable computer system suffers a data loss, and also protects a business from other expenses that a data breach can cause. This area of protection has seen a drastic increase in demand over the last decade, as your trusted consumer data is a prime target for scammers.
  • Business Interruption Insurance can replace valuable lost income if you are unable to be open because of outside elements such as a fire or being a victim of extreme vandalism.
  • A Business Owner’s Policy enjoys the collective benefits of general liability insurance coverage, business interruption insurance, and commercial property all into one policy. This option also poses the attractive quality of being less expensive in the long run than purchasing separate policies to adequately meet your needs.

A Few Useful Tips for Lowering the Cost of Small Business Insurance:

Begin a Productive Safety Program: This could save you money on workers comp costs, and provide the opportunity to document all regular training sessions your staff holds. It is important to make sure that employees sign off after reading safety materials and make sure your insurance company knows you have the program in place.

Correctly Classifying Workers: It is very important to make sure you have detailed and accurate job descriptions for your employees, and always make sure that they don’t do any work that doesn’t meet their job description. Our agents here at Alexander can help you specify the ideal classifications.

Joining a Trade Association: This is another great way to save money on necessary workers comp insurance by benefitting from a group rate. If you can manage to join a trade association with at least 300 members with several that procure the same risks as your business, you’ll be able to enjoy a group rate’s savings.

Raise Your Auto Insurance Deductible: You can save money on commercial auto insurance by increasing your deductible, which we know sounds a bit strange off the bat! The deductible is the amount deducted from a check you receive for a claim, or mishap. When you are using a higher deductible, you’ll pay less for insurance but have a higher amount deducted when it’s time to make a claim, so you can be sure you’ll have the ability to cover the difference. 

Shopping around and comparing quotes will help you choose your best option in the long run, and you can also check out any company’s complaint record to assure that they will be favorable while providing your business insurance needs. We are specialists here at evaluating your cumulative risks and taking into consideration everything Missouri state law mandates. We are eager to sit and talk with you about what options will best meet your fiscal year and forward-thinking needs!