As soon as you have decided to start a small business, the pressure is immediately on! Without business insurance coverage, you’ll need to pay any claims that are filed against your business out of pocket just to hope that you can keep the doors open on a wing and a prayer. Even if you have chosen to start an LLC, selecting adequate coverage can help protect your personal assets in a dire time of need. This blog from us here at the Alexander Insurance Agency of St Charles will provide information to help you pick the best policy for you.

Fortify Your Venture: Small Business Insurance Simplified

When you are learning the ropes of the insurance realm, there are three predominant parties to be aware of: The insurer, the insured, and the policy holder. The insurer is the larger entity that sells the policies and pays out claims, such as us. The insured is the individual or property covered by the policy. This can be your car, home, or business. The policyholder is the individual who takes the time to purchase and presides over the insurance policy, which would potentially be you as the small business owner.

If you are initially shopping for any type of insurance, the term “indemnity” will come up frequently. This is the act of compensation for a loss or to secure a party against legal liability. For example, if you have auto insurance from us, we will indemnify you if your car is involved in an accident. The finances you receive will be compensation for the loss suffered when paying for car repairs.

Common Types of Business Insurance:

The type of insurance you need depends on the type of business you have. Most businesses will require a bare minimum of general liability insurance, especially if you are dealing with clients in person. If you offer professional advice, professional liability insurance will be a very strong recommendation. If your day-to-day operations use equipment such as computers or many various tools, you would consider a business owner’s policy. This offers the combination of general liability with coverage for your business property as well.

General Liability Insurance: 

General liability insurance is sometimes also referred to as business liability insurance. Many businesses can function well with this as their only protection. General liability coverage will protect your LLC from any claims that you have directly or indirectly harmed an individual or their property. This also includes any damage that could occur to rental properties owned by your LLC. Personal injuries such as a customer slipping on accident are covered, as well as the space a leased business needs to run efficiently.

Business Income Insurance: 

Business income insurance is also commonly referred to as business interruption insurance. It can be a true beacon of light during tough times, as it covers up businesses’ lost income well interrupted due to extreme property damage. Your business will benefit from compensation for financial loss if events beyond your control dictate you not being able to open. This type of coverage typically includes loss of income but can exclude other ordinary operating expenses such as utility costs. Usually, this coverage applies during the time required to repair or replace the property that was affected.

Commercial Property Insurance: 

This type of insurance will cover the business property that your LLC needs to complete day-to-day operations. For example, a screen-printing company would want this type of coverage in case one of their machines breaks and needs to be replaced to continue making a profit. Commercial property insurance helps protect your owned or rented building, plus the tools and equipment that you need to function. Fire, Lightning, burglary, theft, and wind are some of the forces that can temporarily take you down.

Commercial property insurance helps protect your business’s physical assets, such as your equipment, tools, inventory, furniture, personal property, and the structure itself. This type of coverage is so important because if you choose to skip it, you will have to pay out of pocket for the inconvenience. This covers also includes the very crucial business interruption insurance, which will help reimburse you for lost income when the unexpected happens.

Business Owner’s Policy:

A business owner’s policy combines general liability insurance and commercial property insurance into one package that is usually less expensive. Combining your policy types makes things easier when a covered event occurs and you need to quickly get your business up and running. This could be an ideal fit for you if you are running your business out of a leased or owned office, or directly from your home. 

Professional Liability Insurance:

General liability Insurance policies are not effective against claims of negligence, malpractice, or any misguided mistake leading to misrepresentation. Many categories of business owners can benefit from this type of insurance which is a great help with professionals who offer a specifically licensed variety or advised service. The segment type service you provide will dictate the specifics about this coverage’s abilities to protect you. Physicians and surgeons can benefit greatly from medical malpractice insurance, while errors and omissions insurance is useful for those in the accounting profession.

Worker’s Compensation Insurance:

This insurance covers employees while they are in the crucial recovery process after a work-related injury or bout with illness. Medical bills stack up, wages are quickly lost, and in the worst-case scenario, death benefits need to be allocated to beneficiaries. Construction companies and contractors see the events that lead up to a need for coverage often, as accidents such as tumbling from a ladder can change things in just one instant. 

Commercial Auto Insurance:

Commercial auto insurance will cover both property damage and medical expenses if one of your company vehicles is involved in an accident. If your business has any necessity to rely on vehicles, this type of coverage makes sense. Delivery, transportation, and even individuals such as land brokers could have a freak accident. A typical business auto insurance policy covers all vehicles and employees driving them in the business. 

Continuity Through Premium Coverage: Streamlining LLC Operations

Having a day where everything is “business as usual” can still pose many challenges! Equipment can go on the fritz, customers can make last-minute adjustments, and cybersecurity issues can drastically alter your plans. We can provide you with the detailed information you need to get an LLC-protecting policy started, along with consistent and thorough support. Your LLC structure protects you from lawsuits, but can still leave your business assets dangerously exposed. 

Talk with us today at the Alexander Agency of St. Charles to find a comprehensive LLC solution. We can bundle policies, effectively alleviate risk, and provide a tailor-made plan for you. Every new ring at the cashier or digital check-out is one step in the direction of “staying your own boss” and we will ensure that it solidly remains that way!