Get The Best Business Insurance

Multiple types of business insurance exist to protect your company from losses. Get the best protection at the lowest rates available.

Insurance companies are in the business of protecting your assets in exchange for recurring premium payments. When the asset requiring protection is your business, the importance of finding the right type of insurance cannot be overstated. What should someone look for when purchasing business insurance? What type of business insurance is right for my company?

A business insurance policy protects your business from financial losses due to incidents while your business is operational. What are the top business insurance providers for 2021? Read ahead for information on how to get the best business insurance available today.

Insurance for Small Business and LLCs

One of the most important steps to forming a business is determining the structure best suited for your business and you as its owner. Many small businesses, especially newer entities, are not ready for incorporation. Unincorporated sole proprietorships are appealing to some owners because they are the simplest structure to create, while giving owners the rights to all profits. Sole proprietors also have responsibility for applicable business losses, damages and expenses.

Forming a limited liability company (LLC) at the state level is common alternative for small business owners. LLC owners (members) exist within the company albeit are still separate from it. This legal separation allows members to avoid personal responsible for business-related expenses, losses, liabilities and more. This reprieve from personal liability does not preclude the need for an LLC-applicable business insurance policy, however.

Professional liability insurance is available today to protect your limited liability company (LLC) from damages and/or lawsuits due to certain erroneous or overlooked business practices. Also referred to as errors and omissions (E&O) coverage, this insurance mitigates the consequences of damages caused by errors made by subcontractors. E&O coverage protects you against errors made by employees and even yourself. Professional liability insurance also protects your LLC from legal claims made against you when you/your employees cause damage while performing your jobs.

Why Business Insurance is Necessary

Business insurance is necessary for many reasons. These reasons include financial, legal and personal depending on the type of business owned and its specific structure. The ultimate purpose of carrying an insurance policy is to mitigate, if not eliminate losses suffered due to a wide variety of adverse events.

Business insurance is necessary to allow your business to continue operating even after certain issues occur. Business insurance is also required by law when you have employees on payroll. While most of these laws are designed to protect your employees, having business insurance also protects your company and personal reputation within your sect. Business insurance is also necessary to:

  • Enact certain contracts.

  • Protect against Acts of God.

  • Increase your credibility.

  • Attract a larger pool of employee candidates.

  • Protect against death/disability of yourself or a primary employee (key man/key person coverage).

What Does Business Insurance Cover?

It is vital to understand the types of situations business insurance covers prior to making a purchase. Different types of policies cover specifically different things. For example, workers compensation insurance covers lost wages, medical expenses and qualified legal fees for employees injured on the jobsite under specific conditions. Business property insurance covers the physical building and select personal property inside your business. 

Business insurance policies cover a wide variety of common and specialized situations. For example, data breach insurance protects you from cyber attacks. Commercial umbrella insurance covers what your other insurance policies do not. Other types of business insurance coverages include:

  • Business income.

  • Professional liability.

  • Commercial/business auto.

  • Commercial flood.

  • Home-based.

  • Risk engineering.    

Business Insurance - What to Look for

Numerous factors are imperative to look for when purchasing business insurance. The first two things to consider are legal obligations and industry-related risks. What are the laws for having business insurance in your state? Is your company a high-risk enterprise operating heavy machinery, or is it a technology firm with little risks of physical damage?

Saving money is always important. Choosing price over coverage, however, might cost you more money in the end. Look for business insurance policies capable of covering all your needs first, and then search for the best prices after finding the coverage amount you need. Cutting corners to work with discount providers might also be a mistake in the end. Working with reputable and experienced companies might not be much more expensive, and will almost always get you the coverage and protection you truly need. What else should you look for when purchasing business insurance? 

Consider your deductible but do not let it completely dictate your purchase decision. Higher deductibles have benefits such as more attention paid to risk-management due to necessity, ultimately making your company a safer place. Purchase enough liability insurance. Overestimate your needs as an abundance of caution. Paying a little extra for insurance might save you from paying for significant losses caused by not having the coverage you ultimately needed.

Business Insurance as Low as $19 a Month

Many reputable insurance companies offer business insurance coverage for as low as $19 a month. This coverage offers general liability, workers compensation, professional liability, E&O commercial auto liability and more. Some Insurance companies offer additional discounts with purchase of additional policies. Next Insurance offers businesses low $19 as well as Hiscox which offers tailored  insurance with low monthly premiums.

Average Cost of Business Insurance in 2021

Business insurance is not a one-size-fits-all singular coverage. Multiple coverage types exist for a great variety of actual business types. Types of coverages needed and associated costs are dependent upon potential risk levels associated with your business. The average annual premiums for general and professional liability coverage in 2020 were each slightly higher than $1,600. The national average cost of workers comp insurance in 2020 was just above $3,000 per year. Special events insurance cost approximately $200 per event, whereas liquor liability and employment practices liability insurance (EPLI) each cost approximately $125 per month during 2020. 

Top Business Insurance Providers for 2021

Finding the best business insurance in 2021 requires knowledge of your company’s specific needs, all risks involved and the laws in the state where you operate. The National Association of Insurance Commissioners (NAIC) is one resource to help find licensed business insurance agents near you. Numerous options listed below also provide the top business insurance policies available for 2021: