A Brief Overview of the Insurance Sector

For businesses, investing in insurance can protect your company from unexpected costs. 

Those in the transportation sector for instance should consider commercial truck insurance companies that provide trucking insurance services that include financial and legal protection from physical injury and property damage. 

Depending on your type of business, there are specific types of insurance that may be more appropriate for your needs. More likely than not, having the protection insurance coverage offers will pay off at some point in the future. 

Over a period of 10 years, statistics show that 40% of businesses will file an insurance claim. In particular, small business owners may experience greater personal financial risks that may affect their growth and expansion.  

As a result, it’s vital for all businesses to evaluate their individual needs in order to determine which insurance provider is the best fit for their company. 

With the broad variety of insurance plans and providers on the market, learning about the specifications of each type can help you make a more informed decision. 

Why Do Businesses Need Insurance? 

While insurance doesn’t cover every loss made, it can help cushion large losses for your business. From potential lawsuits to natural disasters, having to pay these costs out of pocket can result in major losses and impact your day-to-day operations.

In general, most businesses should invest in general liability and property insurance. The federal government requires businesses that have employees to have worker’s compensation insurance, unemployment insurance, and state disability insurance.

If you business deals with other specialities, you may also need to consider additional policies that come with broader coverage. 

Types of Business Insurance Companies

There are several kinds of business insurance plans that businesses should consider, and you’ll find some of the most common insurance companies below. Because laws vary by state, you can also visit your state’s website for more information on the specific requirements for your business.  

Commercial Property Insurance Companies 

Commercial property insurance deals with potential loss or damage to business assets such as buildings, furniture, inventory, machinery, and more. In the event of a fire, explosion, burst pipe, theft, or vandalism, you’ll be compensated by your insurance company.

While earthquakes and floods typically aren’t included in commercial property coverage, they may be added to the policy. Earthquakes and floods typically aren’t covered by commercial property insurance, unless those perils are added to the policy.

The cost of your commercial property insurance plan depends on the relative value of your assets, vulnerability to natural disasters, level of occupancy, and more. 

Worker’s Compensation Insurance Companies 

Worker’s compensation insurance is required for most companies with employees except for those who are sole proprietors and in partnerships. It protects the employees of a business under state laws by providing medical care, lost wages, and other benefits for those who are harmed, suffer an illness, or are killed during their job.

The insurance company is responsible for covering all costs and damages suffered by the worker, on a no-fault basis. However, if an employee is determined to be under the influence of drugs and alcohol, this benefit may not apply.   

Cyber Insurance Companies 

With the growing threat of online attacks, cybersecurity is a growing concern for all businesses. Data breaches and fraudulent payments can seriously harm a business’ reputation and ability to operate. 

Depending on the type of plan you choose, some benefits include cyber extortion and ransomware coverarage, data recovery and restoration, public relations services, and misdirected payment fraud coverage. 

Having the cyber support you need to protect your data, employees, and customers can give you added benefits to general liability insurance. 

Professional Liability Insurance Companies 

Due to human nature, mistakes and accidents can occur in any industry. Professional liability insurance companies help remedy this by covering claims related to negligence, misrepresentation, and misleading advice. 

If a client chooses to sue your business due to financial or physical loss as a result of a mistake caused by your company, you may have to cover these costs — unless you are protected by professional liability insurance. 

Some companies that would benefit from this coverage include those who deal directly with customers and those that regularly give advice to clients. 

Business Owner’s Policy (BOP) Insurance Companies 

To simplify your insurance coverage, business owner’s policy insurance companies combine business property insurance and business liability insurance into one plan. This covers things like physical damage to your property and claims of bodily injury.

It can be custom-tailored to suit a business of any size and combined with optional coverage for data breaches or off-premises services. It’s also more affordable than buying separate coverage plans. 

Businesses should consider investing in a BOP insurance plan if you have a physical location, whether it’s in your home or a rented or owned office space. In addition, if you have  any assets that may be stolen or damaged, a BOP can help cover these losses. 

Commercial Truck Insurance Companies

Trucking insurance services offer specialized coverage to truck drivers and businesses that use trucks. This includes motor carriers of trucking fleets, owner operators, and private carriers who transport goods on the behalf of their employer. 

Commercial truck insurance can be purchased for one truck or for an entire fleet of trucks. Collisions, accidents, and vehicle repair are some of the incidents that may be covered under trucking insurance services. 

A driving record is one of the determining factors for trucking insurance premiums, which will vary depending on the individuals listed on the policy. 

How to Choose an Insurance Company

Before choosing an insurance company, it pays off to do your own research and consult a qualified insurance agent for the best options. Knowing the ins and outs of your chosen coverage will help you file claims more easily and prevent future headaches. 

Understand your coverage needs

When it comes to choosing your coverage, it’s best to define the scope of what your business needs to plan for in the event of the worst case scenario. For instance, a remotely operated business may not have the same needs as a brick and mortar shop, so keeping your requirements in mind is crucial. 

Don’t forget to consider physical coverage for you and your team as well as financial damages that may come in the form of a lawsuit. 

Plan for future growth

What many businesses may fail to take in account is the direction of their future expansion. Although you may not need cyber coverage at the moment, if you’re planning to expand your e-commerce channels, this may come in handy down the line. 

Choosing a plan that will scale with you in terms of employee and business growth may be worth it in the long run. 

Explore multiple providers

To reduce costs and find the best coverage option, it helps to explore options from a variety of insurance companies. 

A knowledgeable insurance agent can help you do some of the legwork by compiling a range of quotes in an easy to read document. This way, you can carefully search for any gaps in insurance coverage while narrowing down your potential choices. 

Cover all your risks

Knowing all your business obligations such as a time limit for filing claims can help you receive the benefits that you signed up for. On the other hand, neglecting any area can open up your business to further risk. 

Looking beyond general liability insurance and opting for more specialized coverage can give you the highest level protection. 

Be wary of extremely low pricing

If you’re on a budget, it can be tempting to purchase an insurance plan with the cheapest plan. However, budget plans rarely come with extensive coverage which can mean more money out of your pocket if a loss happens.

In addition, a suspiciously competitive price might mean that an insurance company is new to the market and doesn’t have the necessary experience in their industry. 

Consider company reputation and reviews 

Choosing a top-rated provider is one of the best moves to make when choosing an insurance plan. Look at which states sell their products, the length of time they’ve been in business, as well as their company mission and their values. 

Customer reviews can also show you information on how responsive they are in terms of claims and how well they communicate. Customer service, policy changes, and online claim reporting are some factors you should also consider. 

Getting Insurance For Your Business 

When it comes to getting insurance for your business, reviewing your specific needs on a yearly basis and knowing what your policy does and doesn’t cover can help you stay on top of your requirements. 

Finding the right insurance provider to work with can be a daunting task, especially when it comes to contractual obligations and reading the fine print. 

In order to simplify this lengthy process, our team of insurance agents at Assured Standard can help you compare custom-tailored quotes from the best insurance companies. This way, you can make an informed decision based on your coverage needs and find the plan that’s best for you. 

Request a quote online from Assured Standard and protect the future of your business today.