Just as personal insurance coverage protects individuals from losses faced as the result of many different risks faced every day, business insurance provides that same sense of security to a business.
Every business faces exposure to loss for many different reasons, all of which need the protection of business insurance. Fortunately, there are an equal number of ways to protect a business – whether large or small – from the risks arising from unexpected events.
Business Insurance combines protection from all major property and liability risks in one package. Packaged policies are created for businesses that generally face the same kind and degree of risk. Larger companies may purchase a commercial package policy or customize their policy to meet the special risks they face.
Business Insurance provides coverage for
- Buildings and Contents Owned by the Company: There are two different forms, standard and special, which provides more comprehensive coverage.
- Business Interruption Insurance: Covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business. It can also include the extra expense of operating out of a temporary location.
- Liability Insurance: Covers your company's legal responsibility for the harm it may cause to others. This harm is a result of things that you and your employees do or fail to do in your business operations that may cause bodily injury or property damage due to defective products, faulty installations and errors in services provided. Business Owner Insurance does NOT cover professional liability, auto insurance, worker's compensation or health and disability insurance. You will need separate insurance policies to cover these subjects.
Business Insurance F.A.Q.
Does my small business need insurance?
Yes. Not having insurance - or not having the right kind of coverage - can put your business at risk. Without adequate insurance, a fire, theft, employee accident, or lawsuit could destroy your business and might even consume your personal assets.
In fact, your business may be legally required to have certain kinds of insurance.
Do I need liability insurance if my business is incorporated?
While certain business structures such as incorporation are designed to protect owners' personal assets in cases of liability, they do not exempt companies from insurance needs. In fact, incorporation typically does not protect you personally from professional malpractice and other liabilities. Although incorporation makes your company a separate legal entity, an attorney could find ways to strip away your corporate shield and make you personally liable in the event of a lawsuit.
Do I need workers' compensation coverage?
In general, you need to carry workers' compensation insurance if your company has employees. Without coverage, you may be sued by an injured worker for medical and disability costs, plus damages. Workers' comp requirements vary from state to state. Each state has its own workers' comp laws, as well as its own administrative and legal structure for handling claims and disputes. Learn more about Iowa workers compensation laws.