Insurance coverage needs vary for electrician insurance. For example, some electricians may store all the business equipment in a vehicle, and some may rent commercial property for storage. Some may keep electrical equipment at a job site. Some may work alone; some may have employees.

You need to protect your business by having the proper insurance policies. Here is information that business owners need to know to get the proper insurance coverage while saving on insurance costs.

• READ MORE: How Much Does Business Insurance Cost?

Why Should Electricians Be Insured?

A basic type of business insurance that electricians need is liability insurance. Professional liability insurance protects the electrician who causes property damage or bodily injury to a client. For example, improperly wired electrical boxes could cause damage to a home entertainment system, and the same error in a customer’s house could cause bodily harm to the customer.

To be licensed as a business, an electrician must secure liability insurance coverage. Any informed customer should avoid hiring an electrician who lacks business liability insurance.

Electricians who have an employee or employees must get worker’s compensation insurance for the business. That is also legally required coverage for a business.

• READ MORE: 14 Electrician Apps

What Does Business Electrician Insurance Cover?

Business insurance coverage can be broad or specific. The type of coverage varies by the type of policy.

Here are details about each type of insurance policy that is required for business purposes:

Business General Liability Insurance

General liability insurance is a fundamental type of business insurance mandated by law. This coverage safeguards electricians against claims of property damage or bodily injury caused to a client due to professional negligence. The policy also includes coverage for medical payments that a customer may claim.

General liability insurance is essential for electricians and other contractors as it serves as the foundational business insurance they require. Among the various small business insurance options, this coverage is indispensable.

Commercial Property Insurance

Commercial property insurance would be required for an electrician who owns or leases a space to store equipment and would also include office furniture. This type of electrician insurance policy may be required if the electrician keeps business property on personal property – such as in a shed or garage at a residence. A homeowner’s insurance policy most likely won’t cover commercial property, but it’s possible to get a “rider” to expand the homeowner’s policy.

Business Interruption Insurance

Electricians often add this to their general liability insurance. Business interruption can be caused by Mother Nature – such as a windstorm or flood which makes it impossible to conduct business. It will also cover business interruption caused by theft of equipment, and is advisable as an additional policy to protect your business, both to protect equipment and cover lost wages. The coverage can often be bundled with general liability insurance.

Workers Compensation Insurance

Worker’s Compensation insurance is required for a business that has one or more employees. It would cover medical bills for employees. Worker’s Compensation insurance is required by law.

Commercial Auto Insurance

Commercial auto insurance is essential for the work vehicle, even if it is also utilized for personal purposes. In the event of a car accident involving a personal vehicle loaded with work equipment, a personal policy will not cover damages to that equipment. An electrician or contractor should not allow an employee—who is not listed on the insurance policy—to drive the vehicle, even if it’s just for a lunch break.

• READ MORE: Where to Buy Small Business Insurance Online

Other Types of Insurance Coverage for Electricians

General liability insurance is the place to start for an electrical contractor. In addition to the general liability insurance, there are “add-ons” an electrician may need. Fortunately, these “add-ons” can often be bundled at a discounted rate with general liability insurance, combined within a Business Owner’s Policy, or BOP.

Commercial umbrella insurance – Commonly referred to as a BOP, this policy allows business owners to enhance their general liability insurance by adding various specific types of coverage. While there are numerous insurance combinations that can be included in a business owner’s policy, it’s important to note that worker’s compensation insurance is not part of a BOP. Instead, the Worker’s Compensation insurance policy is always a separate, stand-alone policy.

• Equipment breakdown insurance – This insurance policy does not cover breakdowns caused by normal wear and tear. However, it does provide coverage for the repair or replacement of equipment that fails, as well as compensation for lost income.
• Hired and non-owned auto insurance – If the business vehicle is in a shop for repairs, using a personally owned vehicle, employee vehicle, or client’s car for business use isn’t the way to go. To avoid having to wait for repairs to be completed, the electrician may need to temporarily rent a vehicle.
• Contractor’s tool and equipment insurance – This type of insurance coverage is a must for electricians who leave mobile equipment at a job site for business use. You’ll protect your business and valuable equipment against financial losses caused by damage or theft.
• Installation floater – This type of business coverage protects items that aren’t equipment. It would include coverage for supplies, such as copper wires, conduits, and electrical boxes.
• Errors and omissions insurance – This type of business insurance covers you if a client sues you, claiming faulty work, property damage, and/or coverage for medical expenses. Coverage will be monies for legal defense and other legal costs. E and O insurance are also sometimes called professional liability insurance.
• Surety bond – A contractor typically must be “bonded and insured” before obtaining a business license and beginning to provide services. It’s a payment bond, a guarantee that the business will conduct the work (performance bond). A small business owner should consider getting a surety bond from the Small Business Association, which provides such services.

READ MORE: 11 Types of Business Insurance You May Need

How Much Does Electrician Insurance Cost?

Electrician insurance costs can be discounted if combined under a BOP. A basic BOP would cover general liability, business interruption services, and commercial property coverage.

Here are some basic starting numbers:

• General liability $500
• Commercial Auto $1500
• Tools and Equipment $500
• Worker’s Compensation $3,000

There are companies that specialize in business insurance policies. Here’s a look at our top picks.

Best Places to Get Electrical Contractor Insurance

Before you start to shop, join your local or state electricians association. You may get insurance information from its members by networking.

State Farm

State Farm is a reputable insurance provider with extensive experience in offering business insurance. The company may offer a “rider” for business owners who store equipment on their personal property.

Biberk

Biberk can provide instant and specific electrician insurance coverage. It’s favored by part-time contractors who need coverage for specific lengths of time, even for as short as a day or two.

Progressive

Progressive is a choice that provides affordable coverage. It offers discounts for combinations, such as general liability with commercial auto insurance.

Next

Next insurance is popular for small businesses and self-employed contractors. Next insurance offers a number of choices.

The Hartford

The Hartford is a well-established company that has decades of experience in offering insurance coverage for businesses.

Nationwide

Nationwide offers discounts when business insurance policies are combined.

• READ MORE: 10 Best Small Business Insurance Companies

Are Electricians Legally Required to Carry Business Insurance?

Yes. In order to become licensed, an electrician must have business insurance.

Does Electrical Contractors’ Insurance Cover Employees?

No. An electrical contractor must obtain Worker’s Compensation insurance in order to cover employees. Any small business which has an employee or employees must obtain Worker’s Compensation insurance. It is required by law.

How Much Electrician Liability Insurance Do You Need?

Most policies cover from $500,000 to $1 million and up. An electrician should consider the value of the properties where the work will take place.

For instance, is the electrician working for a shopping complex, a large factory, or an opulent home? It’s important to consider the potential property damage that could be claimed by the client, who may be associated with a multi-million dollar project.

An electrician can start with a certain amount of liability coverage and increase that as needed. Although the electrician may be working on a $100,000 home, the cost to replace that home – given the up-to-date cost of materials and labor – could be much higher than the home’s current value or assessment.

The policy cost may vary depending on the deductible amount chosen. You can play with the deductible amount and see how much raising that changes the monthly cost. However, often the degree of change in the monthly premium cost isn’t worth it – it’s best to stick with the lowest deductible amount.

Does Business Insurance Differ by State?

Yes, for a couple of reasons. Costs vary in some states, which have a cap on the maximum level of liability that a customer can claim.

The cost of Worker’s Compensation may also vary, depending on whether or not it is established by the dollar amount of claims paid. If a state has a high number of workers’ compensation claims, the rate for that insurance will be higher.

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This article, "Where to Find Electrician Business Insurance" was first published on Small Business Trends

Before we provide answers on how much does business insurance cost, consider the potential expenses you would face without insurance coverage.

There are business insurance benefits that far outweigh the costs. And the cost factors vary by the types of business insurance you need.

Let’s detail the types and average small business insurance costs.

How Much is Business Insurance

Choosing the right type of insurance policy is an important part of the process. Start by making a list of your risk exposure.

Do clients frequently come to your business location? Is the majority of your business conducted online? Are you operating from home? Do you need coverage for vehicles? Do you employ staff?

Every business situation is different. Let’s look at the basics:

Professional Liability Insurance Cost

Professional liability insurance is also called Errors and Omissions. This type of small business insurance is needed by owners who offer professional services, such as accountants, dieticians, financial advisors, lawyers, and more.

Average monthly cost: $50

General Liability Insurance Cost

You need general liability insurance if you have products. Someone could get injured by your product, or your product could cause personal or property damage. The cost for general liability may vary according to the policy limits for how much coverage you require.

Your general liability insurance also covers you if a client or customer suffers a personal injury at your place of business during normal business operations.

Average monthly cost: $50

Workers Compensation Insurance Cost

If you have employees, worker’s compensation insurance is a legally required business insurance policy no matter what your number of employees, one or 50. It’s a small business insurance cost that can’t be avoided. If you have employees, they could have workplace injuries. Workers Comp insurance will cover you if an employee suffers bodily injury and has claims related to medical costs.

Average monthly cost: $78 a month, or $900 per employee.

Commercial Property Insurance Cost

People operating a business from home often overlook commercial property insurance. Most basic homeowner’s insurance policies don’t cover the cost of specific business equipment you have in the home, such as computers, software, and production equipment.

If you own or lease a space for your business, commercial property insurance will protect your business equipment and any stored inventory or products. This coverage also extends to physical damage to the building itself. The costs can vary significantly based on the type of business. For instance, the insurance rates for a specialty paint manufacturer will differ from the average annual premium for a clothing manufacturer.

In addition to working with hazardous materials (such as flammable paints and glues), there are other factors that would determine whether or not your business has a higher risk of operations.

Average monthly cost: $100 to $2,000.

Business Owners Policy BOP

With a business owner’s policy, you can combine general liability insurance, professional liability insurance, and commercial property insurance. Increasingly, an insurance company may combine more coverage by allowing you to add cyber liability insurance to provide more comprehensive coverage.

The typical price of a BOP is less than the total of the policies if taken individually from an insurance provider.

Average monthly cost: $300 to $3,500

Read More: best small business insurance companies

Cyber Liability Insurance Cost

If you’re a small business owner who’s conducting any aspect of your business electronically, you need this type of insurance. If you have a data breach, you could expose customer information – such as payment info, addresses and phone numbers, etc. – to the web.

Cyber liability coverage encompasses the expenses associated with data recovery and system restoration. Additionally, it assists in covering legal fees if you face a lawsuit due to a data breach.

Average monthly cost: $145

Umbrella Insurance Cost

In addition to a BOP, an insurance company may offer a CPO, or Commercial Property Owner’s policy. Small business owners who have a fleet choose this type.

The CPO will include Commerical Property Insurance but also allow you to “umbrella” commercial auto insurance. Many factors affect how much the annual premium will be – such as the number of vehicles, use of the vehicles, and size of the vehicles (for example, van or tractor-trailer).

Average cost: $1,000 to $3,000 annually per $1 million valuation; smaller businesses can expect to pay about $700 annually.

Commercial Auto Insurance Cost

Are you using your personal vehicle for your business? In other words, is the family mini-van being used to deliver candles or cupcakes, etc?

You should monitor your mileage as a business expense. To decide if you require a commercial auto policy, you need to differentiate between how much of your annual mileage is for personal use versus how much is for commercial purposes.

If you lack commercial auto insurance and are involved in a business-related accident, you may need to provide some clarification.

Average monthly cost: $140, depending on the type of vehicle.

Disability Insurance

Often overlooked, obtaining disability insurance can be one of the smartest financial choices you make. This coverage can help pay for some of your business expenses if you become injured or ill. It is particularly crucial for individuals in high-risk occupations, such as contractors and landscapers, who may be more prone to serious injuries on the job.

The annual cost is typically about 4% of your income.

Hazard Insurance

This is another type of insurance that is often overlooked. Frequently, commercial property policies and homeowner’s policies do not provide coverage for natural disasters like hurricanes and earthquakes.

Also, commercial property insurance may not include the outside of your business, such as signage and landscaping. Hazard Insurance picks up that slack.

Average monthly cost: $60-$200

Factors Affecting Small Business Insurance Cost

Here are factors that affect small businesses’ insurance costs:

• Business Assets
• Number of Employees
• Claims History
• Professional Services Offered
• Geography/Location
• Number of Years in Business
• Type of Business
• Need for Vehicle Insurance
• Home-based or physical location
• Types of coverages needed

How to Reduce the Cost of Small Business Insurance Premiums

Many business owners have become savvy about ways to save money on business insurance coverages. And that leads us to our first tip on how to reduce cost.

• Seek expert advice from other small business owners
• Group policies under one umbrella
• Take steps to minimize risk
• Save by adding safety measures such as alarm systems and updated software.

Choosing the Right Insurance Company for Your Business

Although many insurance providers offer free estimates, your time isn’t free. It’s likely that you could literally spend hours researching different insurance companies.

Try to whittle down your search by:

• Listing the types of business insurance coverage you need.
• Networking with other small business owners.
• Working with an independent insurance agent or insurance company with small business insurance experience, who can wade through the choices and report back to you.

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This article, "How Much Does Business Insurance Cost?" was first published on Small Business Trends

Oh, absolutely, business owners need it. If you run a small business, you are engaging with customers in some capacity, which makes it essential to protect yourself with insurance.

Although the cost varies by type of operation, the business insurance benefits far outweigh the cost. And liability insurance coverage helps you protect your business. There are many types of business insurance products, making liability insurance a basic necessity for small business owners.

Let’s see how professional and general liability insurance coverage provides protection for you.

What is Liability Insurance for Small Businesses?

There are two basic types of liability insurance: professional and general liability insurance. Business owners could need one type or both:

• General liability insurance – General liability insurance is the most widely used type of business insurance coverage. It safeguards your business in the event that a client or visitor is injured on your premises. Additionally, general liability insurance offers protection for damages you may cause while conducting business. For instance, if you are a contractor and accidentally break a customer’s window while setting up your extension ladder, this insurance will cover the costs. Moreover, general liability insurance protects your business against claims related to reputational harm, such as allegations of libel or slander, as well as advertising injuries where someone is harmed due to your product claims.
• Professional liability – Professional liability coverage is commonly called Errors and Omissions insurance. It protects against errors in the service provided. For example, you’re a financial planner, and an investor’s portfolio goes south. Or you’re a couple’s counseling therapist, and someone believes you gave bad advice.

Which Businesses Need Liability Insurance?

You may need both general liability insurance and professional liability insurance.

You need general liability insurance to operate a business. Without general liability coverage, you are leaving yourself open to lawsuits regarding your products, and you are not covered for property damages you cause or accidents that happen to a visitor to your business. If a salesperson or visitor has a slip/fall injury at your place of business, you’re not covered.

You may need both types of business insurance if you provide professional services. Here’s an example: You are an accountant. One of your tax return clients slips on a wet floor in your office bathroom, tearing an ACL. That’s where general liability business insurance kicks in.

You provide guidance to a tax return client, suggesting an alternative method for handling equipment depreciation to help lower their tax bill. Two years later, the client received a notice from the IRS stating that your advice was incorrect, resulting in the client owing back taxes. This is where professional liability coverage would come into play, offering protection in such situations.

What Does General Liability Insurance Cover?

Here’s a more specific breakdown of what small business owners need to know about general liability insurance coverage.

Medical Expenses

General liability insurance policies cover you if a visitor or client suffers a bodily injury at your place of business. The person’s bills for medical treatment could be astronomical, and customer injury can involve medical bills plus court costs and attorney fees – an obvious reason for you to carry general liability insurance.

Property Damage

If you go to clients’ properties to do work, your general liability policy will cover you if you cause property damage. For example, you’re a landscaper, and you cause property damage to a building when a rock discharges from a mower or you run over a row of hydrangeas. In either case, you have damaged a person’s property while performing services, and you’re legally responsible.

Legal Defense Costs

One of the highest payouts an insurance company pays out on general liability claims isn’t for bodily injury – it is for the cost of legal fees. For example, the slip/fall bathroom injury to a client’s ACL causes stress and loss of income. In addition to seeking payment for medical expenses, the client sued for additional money. Your general liability policy would cover legal defense costs, including legal fees and related costs.

Personal and Advertising Injury

General liability business insurance covers you if someone claims your product was promoted by false advertising. For example, you sell a mattress that is ‘guaranteed to reduce back pain’, and someone claims it didn’t work.

Personal injury claims come from someone who believes you have slandered or libeled their business. For example, you’re operating a food truck, and one of your employees tells a customer that someone else’s food truck business doesn’t maintain cleanliness standards.

What Does Professional Liability Insurance Cover?

Errors and Omissions

This is broad coverage and protects you against a general liability claim of negligence, misrepresentation, or violation of good faith.

As you can imagine, these are general terms, and claims typically involve legal fees. Your insurance company will cover defense costs, including legal fees, the amount of a settlement/judgment (up to what’s set in the policy), and administrative costs (such as preparing documentation).

What is Not Covered by Business Liability Insurance?

Now that you know what is covered, you need to know what isn’t covered with this type of small business insurance:

• Commercial property insurance – Your general liability covers you if you damage someone else’s property, but to protect your own business property, you need commercial property, which protects your building and business equipment. You may need commercial property insurance even if you operate from your house – unless you can get a “rider” from your homeowner’s policy to cover your business. You need commercial property even for premises you rent.
• Commercial auto insurance – Yes, you need a separate commercial auto policy to cover a vehicle or vehicles you use to conduct business operations.
• Worker’s compensation – If you have employees, you need a separate worker’s compensation policy. In this age of subcontractors, many small business owners are opting to buy worker’s compensation policies that cover part-time and/or temporary workers, even 1099ers.
• Cyber Security – Many insurance companies are opting to either add this to their liability coverages or offer it as a separate policy. For example, you may be able to get a Business Owner’s policy which includes general and/or professional liability coverage, plus cyber security. Cyber security is needed for all normal business operations where customers’ personal data is needed as part of doing business. It’s one of the most overlooked and needed small business insurance products.

Small Business General Liability Insurance Cost

How much does general liability cost? The insurance policy cost varies by specific business and the business’s amount of revenue. It can also vary by your chosen coverage limits. If you choose an insurance company that offers umbrella coverages, such as a business owner’s policy, that will lower your general liability insurance cost.

In general, you can expect to pay as little as $29 a month for basic business liability insurance coverage.

Small Business Professional Liability Insurance Cost

Rates vary from one insurance company to another. Professional liability business insurance varies by type of business and annual revenue.

In general, you can expect to pay as little as $20 a month for basic coverage limits.

How to Choose the Right Liability Insurance for Your Small Busines

Before obtaining general liability insurance or professional liability insurance, consult with a legal professional about establishing your business as a limited liability company (LLC). Creating an LLC allows you to protect your finances by keeping your business assets separate from your personal assets.

Here are some tips for the small business owner:

• Network with other small business owners
• Shop online. With just a few clicks, you can start looking at quotes.
• Shop in person.
• Obtain quotes for both general liability insurance and, if necessary, professional liability insurance, and then compare them.
• Carefully consider the deductible. With any claim, your rates will increase. Is it better to have a higher deductible – intending to pay for damages and not make a claim? How much could you afford to pay out of pocket?
• Evaluate your quotes.
• As a final deciding factor, call the customer service line that you’d use to make a claim. See if you would be able to tolerate the wait time.

Best General Liability Insurance for Small Business

Every business owner should have general liability insurance, and many may also require professional liability insurance.

We’ve chosen companies which provide both. These companies also offer a Business Owners Policy or BOP, which can help you save money by combining policies under one umbrella.

These companies also offer cyber insurance and other insurance products. For example, Progressive offers commercial auto insurance.

The Hartford

The Hartford offers a wide variety of additional insurance products, and can also provide financial advice.

State Farm

State Farm offers riders to homeowners policies for many home-based businesses. If you have set up your business at home, you can save money by buying a rider instead of a separate policy.

NextInsurance

NextInsurance is the go-to for contractors and landscapers who want to set up a quick policy. NextInsurance also offers policies for daily, weekly or monthly periods of time.

Biberk

Biberk Insurance is a favorite for subcontractors who are working at third-party locations. Biberk offers many insurance policy options.

Progressive

Progressive is known as an auto insurance company but provides many types of business insurance. Since it offers both a general liability insurance policy and commercial auto, you may be able to save money by using the same carrier to get both types of insurance.

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This article, "Do You Need Small Business Liability Insurance?" was first published on Small Business Trends

As a small business owner, you likely have a lot of irons in the fire. Running your company calls for wearing many different hats and taking on a ton of responsibilities. One of those responsibilities may be owning and operating commercial vehicles for your business. If that scenario describes you, it’s crucial to have comprehensive coverage in place.

However, business auto insurance is different from regular car insurance, which you buy for personal vehicles. So make sure you know what to expect before you sign up for your next auto insurance policy.

In this article, we will discuss what you need to know about business auto insurance so that you can make an informed decision about which type is right for you.

What is Small Business Auto Insurance?

Small business auto insurance is one of the types of business insurance you should never forgo. For example, suppose your business owns and operates a vehicle or leases and operates a vehicle during business operations. In that case, a commercial car insurance policy is designed to protect you from financial losses in the event of an accident.

Moreover, commercial auto insurance can cover damage to your vehicle, damage caused by your vehicle, injuries sustained by you or another driver while operating your vehicle and more. Besides providing coverage to your own car, it can cover business-owned vehicles like fleets of cars or trucks.

In addition, this type of commercial insurance can also help when employees use their own autos for business purposes.

Why Should Small Business Owners Take Out an Auto Insurance Policy?

If you are a small business owner who is using business-owned vehicles to conduct company operations, it’s essential to make sure you have the proper insurance coverage in place.

Here are some of the main reasons you should talk to your insurance company about taking out an auto insurance policy on company-owned vehicles:

To protect your business: If one of your vehicles is involved in an accident, commercial auto insurance can help cover the costs of repairs, as well as any liability claims that may arise from the accident. Without this coverage, you could be forced to pay out of pocket for these expenses, putting a serious financial strain on your business.

To protect your employees: If you have employees who use their own vehicles for company purposes, commercial auto insurance can help protect them in the event of an accident. This coverage can help pay for medical expenses, as well as any damage that may occur to the employee’s vehicle.

To protect your customers: If one of your vehicles is involved in an accident while carrying customers or customer property, commercial auto insurance can help cover the costs of damages or injuries.

To get better rates on your insurance: Many insurance companies offer discounts to businesses that have commercial auto insurance. So, not only will you be covering your business vehicles correctly, but you could also save money on the premiums you get from your insurance company.

To comply with the law: Besides offering several business insurance benefits, having this type of coverage is mandatory. Most states require you to have a commercial auto policy if you own or operate a vehicle for purposes related to business. Violating these laws can result in legal fees and costly penalties, so it’s essential to make sure you are compliant.

To get high limits of protection: Limits on a personal auto insurance policy are usually relatively low, often not enough to fully cover the costs of an accident or costly medical bills. However, you can get much higher coverage limits with commercial auto insurance, giving you peace of mind knowing your business is well-protected.

It’s comprehensive: Commercial auto insurance is comprehensive and typically customizable. With just one policy, you can get a wide range of protection against liability, property damage, cargo coverage and even medical payments. This step saves you time and effort and gives you peace of mind.

What is Covered Under a Small Business Auto Insurance Policy?

Now that we’ve discussed why you need small business auto insurance let’s talk about what commercial auto insurance covers. The coverage is slightly different for individual commercial vehicles than for fleets, so we’ll go over each one separately.

Note that commercial auto coverage isn’t part of your business owner’s policy, so you will need to purchase it separately.

Individual Business Auto Insurance

Many small business owners aren’t sure what is covered by individual business auto insurance, and that’s OK. We’ll explain the basics of it in this section.

Individual commercial auto insurance covers a single vehicle used for company purposes. The types of coverage you can get in a commercial vehicle policy typically include the following:

Collision Coverage

This type of insurance helps pay for repairs to your vehicle if it’s damaged in an accident with another vehicle or object (e.g., guardrail, mailbox, falling tree limbs).

Comprehensive

Comprehensive coverage pays for damage to your vehicle from covered perils like flood, fire, theft, and vandalism.

Bodily Injury Liability

This type of liability insurance coverage helps pay for bodily injuries or fatalities resulting from a car crash where the driver is at fault. In addition, it provides for a small business owner’s legal defense in most cases.

Property Damage Liability

This type helps pay for damages to another person’s property (vehicle, home, business, etc.) that resulted from an automobile crash where the driver is at fault.

Read More: how much does business insurance cost

Combined Single Limit (CSL)

This type of policy will help provide coverage for both bodily injury and property damage within one limit. For example, if your policy has a $500,000 CSL, that’s the total amount the insurer will pay for bodily injuries and property damage resulting from a single accident.

Medical Coverage Payments

This type of insurance covers medical bills and funeral expenses for you and your passengers in the event of a crash, regardless of who is at fault. It is often referred to as Personal Injury Protection (PIP), Medical Payments Coverage, or No-Fault insurance.

Underinsured Motorist/Uninsured Motorist

This type of insurance provides protection in the event that you are involved in an accident with a driver who lacks insurance or does not have sufficient liability coverage to cover the costs associated with the accident.

Business Fleet Insurance

Business fleet insurance is a type of policy that covers multiple company vehicles or fleets at once. It keeps your costs low and protects your assets.

Some examples of vehicles used under fleet insurance can include anything from everyday vehicles used for food delivery to semi-trucks used for shipping and hauling cargo to heavy machinery used in construction.

The types of coverage available with a business fleet policy are similar to those available with individual commercial auto coverage (comprehensive, bodily, property, CSL, PIP, bodily and uninsured/underinsured, etc.), but with some differences. They include:

• The size: Fleet insurance policies include several vehicles, usually defined as five or more registered under your business’s name. On the other hand, some insurance companies provide fleet coverage for as little as two vehicles.
• The vehicle types can vary: Vehicles covered under fleet insurance do not need to be of the same kind.
• Transferability: You don’t need to have a fixed number of drivers operating vehicles under fleet insurance. Nor do the drivers of the vehicle need to be listed in the policy to drive any of the company’s fleet vehicles.
• Shared single limits: Business fleet policies have the option to share a single limit across all vehicles rather than having separate limits for each vehicle. In other words, it won’t matter which vehicle has an accident in a fleet of 10 vehicles with a million dollars worth of coverage since they all share the limit.

What is Not Covered by an Auto Insurance Policy?

Now that we’ve talked about what is covered under a small business auto insurance policy let’s talk about what is NOT covered.

First, it’s important to understand that there are two different types of exclusions: complete and partial. A complete exclusion means that the insurer will not cover any damages resulting from that particular peril. A partial exclusion means that the insurer will cover some, but not all, damages resulting from that particular peril.

Some of the most common exclusions found in auto insurance policies are:

Complete Exclusions

• Intentional acts: If you intentionally cause an accident (sometimes DUI), your insurer will not cover the damages.
• War and nuclear risks: If your vehicle is damaged due to war or a nuclear accident, your insurer will not cover the damages.
• Wear and tear: If your vehicle is damaged as a result of normal wear and tear, your insurer will not cover the damages. General maintenance or replacement with custom parts are not included, either.
• Medical expenses not resulting from an accident: If you or your passengers are injured but not as a result of an auto accident, your insurance company will not cover the medical costs.
• Excluded drivers: With individual commercial coverage, if you allow someone to drive your vehicle, which is not listed on your policy, and gets into an accident, your insurer will not cover the damages.
• Employee injuries: If an employee gets injured while driving a vehicle for business purposes, the damages will not be covered by your insurer. Usually, workers’ injuries are covered by workers’ compensation insurance.

Partial Exclusions

• Mechanical breakdown: Your insurer will cover damages caused by a mechanical breakdown only if you have included mechanical breakdown coverage in your policy.
• Animal collisions: If you hit an animal with your vehicle, your insurer will only cover the damages if you have added animal collisions to your policy.
• Windshield damage: If your windshield is damaged, your insurer will only cover the cost of repairs or replacement if you have added glass coverage to your policy.
• Personal belongings: If your personal belongings are stolen from your vehicle, your insurer will only cover the cost of replacement if you have added personal effects coverage to your policy.

How Much Does a Commercial Auto Policy Cost?

Your commercial auto insurance cost will vary depending on a number of factors, including:

• The type and amount of coverage you need.
• The size and type of vehicles.
• The number of vehicles.
• How often do people drive vehicles?
• You and your driver’s driving history,
• The vehicle’s business use and risks.
• The state in which you live.
• The deductible you choose and policy limits.
• The gross vehicle weight when it comes to loading vehicles like tractor-trailers and dump trucks.

As you can see, the costs vary on several factors. You can still get an idea of costs, though. The median cost you can expect to pay for a commercial auto policy of $1 million is $142 monthly or $1,704 annually, according to the insurance company, Insureon. Bear in mind that the median cost offers a more accurate estimate of what you can expect to pay for your automobile insurance than the average cost. However, Insureon also says that many small businesses spend less than $1,500 per year on their commercial automobile insurance.

How to Choose the Best Commercial Auto Insurance Coverage

To prevent potential issues in the future, selecting the appropriate auto insurance policy is essential. Here are several important factors to consider when determining the best auto insurance coverage:

• Explore various available options: Begin by familiarizing yourself with the different types of business auto insurance available, and determine which one best suits the needs of your industry.
• Determine the amount required: Make sure you have enough coverage to protect your business in the event of an accident.
• Evaluate if you need extensions or specialized policies: Specialized insurance companies can provide additional benefits like roadside assistance, named insured coverage, or rental reimbursement.
• Don’t overpay: Make sure you’re not paying for more coverage than you need.
• Choose the best insurance company: Investigate who the best commercial insurance companies are by looking at online reviews and comparing rates.
• Find an insurance agent: Locate and work with an experienced independent insurance agent who can help you find the right coverage at the best possible price.

Read More: best small business insurance companies

How to Get a Commercial Auto Insurance Policy

Once you’ve decided on the right commercial auto insurance policy for your company, you’ll need to take a few steps to get coverage in place.

Here are the steps you can expect to take:

1. Gather information about your company, including the type of vehicles you’ll be insuring and how they’re used.
2. Get quotes from multiple insurers to gain insight into competitive rates and coverage options. Often all this part takes is just a phone call. Make sure to compare apples to apples by getting quotes for the same amount of coverage.
3. Work with an experienced independent insurance agent who can help you find the right coverage at the best possible price.
4. Ask your agent about discounts. Insurance companies offer discounts in several ways for business insurance, including those offered with a full annual payment vs. paying monthly and bundled policies.
5. Set up your account. Once you’ve chosen a policy, it’s as easy as logging in with just a few clicks of a button if you are paying online. First, set up an account with your insurance company by creating your user ID and password. Then, pay your premium.
6. Establish recurring payments to simplify your financial management. Once this is set up, you won’t need to stress about missing a premium payment during your busy times. Typically, you’ll need to provide payment information and complete the setup for this service, so be sure to handle that to benefit from this convenience. Additionally, it’s wise to review your payment history regularly to ensure that your payments are accurate, particularly in the initial stages.
7. Audit your policy every year to ensure you’re still getting the best coverage for your needs.

Commercial Auto Insurance FAQs

Commercial auto insurance is required to operate a vehicle for business purposes in most states. Here are answers to some common questions people have about this type of auto insurance.

Does my personal auto insurance cover business use?

No, and commercial vehicle insurance only covers vehicles owned by a business. Your personal auto policy likely excludes business use. The appropriate policy for vehicles a company uses but does not own is what is known as hired and non-owned auto insurance. This type of insurance policy is not required by law.

What is the difference between business and commercial car insurance?

Small business owners must understand the distinction between commercial and business insurance. Getting the wrong kind may result in disastrous results if you have an accident and are involved in a costly lawsuit.

The primary distinction between the two policies lies in their coverage: business car insurance applies to vehicles utilized for regular trips in standard traffic. Conversely, commercial car insurance is intended for specialized vehicles designed for particular tasks. For example, a business car insurance policy would cover a vehicle used for deliveries, whereas a commercial car insurance policy would cover a dump truck.

Is there business fleet auto insurance?

Yes, and it is available to business owners who have multiple vehicles. However, in the case of fleets, insurance companies don’t differentiate between the words “business” and “commercial” as they do with business and commercial car insurance. In other words, the two terms are often used interchangeably in the fleet auto insurance world.

Is auto insurance for businesses tax deductible?

Yes, auto insurance for companies is tax-deductible in the majority of cases. For example, this deduction applies when vehicles are used as a component of business operations. You can file your premium on your Schedule C tax form if your company is eligible.

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This article, "What You Need to Know About Business Auto Insurance" was first published on Small Business Trends

While some high school graduates have succeeded in the insurance industry, most licensed insurance agents hold college degrees.

Each state has specific requirements for licensing. You’ll take an insurance license exam in your chosen area, such as auto, life, or other. You can apply online to take the exams.

While entering the insurance sales field is relatively straightforward, achieving excellence in it can be quite challenging. To succeed, you must possess strong business acumen combined with effective marketing skills. If you’re looking for information on how to become a licensed insurance agent, these skills are essential for thriving in this industry.

Why do Insurance Agents Need a License?

There are many types of insurance. Insurance agents need a license that covers each type of insurance.

Getting the proper license is required by the insurance industry – states require it. So, it stands to reason that licensing is also required by each individual insurance agency.

How Long Does It Take to Get an Insurance Agent License?

For each type of insurance license, someone must complete a mix of classroom training and independent learning. There is a requirement for a minimum number of hours.

The speed at which you progress through the different types of insurance is up to you. You may be juggling a full-time job while attending insurance courses in the evening, or you might be pursuing insurance license courses on a full-time basis.

If you don’t yet have a college degree, and you’re taking courses, focus on economics, finance, risk management and marketing.

Become a Licensed Insurance Agent in 7 Easy Steps

Your first decision is, what will the work structure be?

Captive Agent – This person will sell insurance for one company.

Independent Agent – This person sells insurance for a number of companies.

Choose What Type of Insurance Agent You Want to Become

Most agents gradually get all the licensing they can but specialize.

For example, someone may choose to get a life insurance license and only be a life insurance agent or focus on health insurance. Life and health insurance fall under the broad category of personal lines.

Here are some other types:

• Property-casualty (also personal lines)
• Vehicle insurance (personal vehicles, motorcycles, RVs)
• Commercial Insurance
• Disability insurance
• Long-term care insurance

Pick the Insurance Products You Want to Sell

Property and Casualty policies protect against fire, theft, auto accidents, and other damage.

Business policies may include property and casualty, and also liability.

Health insurance specialties may include focuses on long-term care provisions and disability.

States follow specific guidelines someone must adhere to in order to get licensed. States require that you take specific steps and pass the state exam in each field.

Pass the Pre-Licensing Requirements

Before you sign up to take an exam, most states require that you take a pre-licensing course. The pre-licensing training will provide a basic background in the field. A specific requirement is that you pass a background check.

Pre-licensing courses typically costs from $200 to $2,000.

Pass Your State Exam and Get Your License

After the pre-licensing course, you can study your specific area of focus. Then, you’ll sign up to take your state’s insurance license exam in that specific field so you can fulfill the licensing requirements.

After successfully passing the state examination, you can submit your license application to the state. The cost of insurance licensing exams ranges from $40 to $150, depending on the specific type of insurance.

You have to pass the state exam before you can sell insurance.

Submit Job Applications

Once your studies and exams are complete, you’re ready to apply to an agency. Make sure your application is complete, especially the result of each examination you’ve passed.

Check over your application and correct any mistakes. Paperwork is of utmost importance in the field. Mistakes in your application may disqualify you for a second interview. You can also look into LinkedIn for insurance agents for marketing and employment opportunities.

Get Appointed with an Insurance Company

Once you start work, expect to work at least 40 hours a week. Many of those hours may be in the evenings and on weekends to accommodate your customers’ work schedules.

In addition to having the proper licenses, you’ll be asked to complete your application by submitting it for a background check.

Once everything is complete, you can begin making sales for insurance franchise companies or top small business insurance providers.

Complete Continuing Education Requirements

Continuing education requirements differ from state to state. Most commonly, many states mandate 24 hours of continuing education, which can include courses or seminars, every two years.

The National Association of Professional Insurance Agents often offers webinars and provides information about education options.

How much does it cost to become an Agent?

The pre-licensing courses may cost from $200 to $2000. Courses and study materials for each type of insurance may cost from $60 to $300. The fee for each state examination may be from $40 to $150.

After you pass a specific examination, the fee for your application to the state for licensure may cost from $30 to $200. Background check fees may cost from $30 to $100.

Are you running a calculator for this? Don’t forget to add in the cost to obtain a college education.

Remember that these costs vary by state.

How much does an insurance agent make?

The average agent makes about $80,000 annually. The salary range goes from $18,000 to $186,000.

The pay is dependent on the type of industry you serve and your location in the country.

Your pay may be a salary, plus commission. Sometimes your length of time and sales record with agencies determines how you will be paid.

What qualifications are needed to become an insurance agent?

To succeed as an insurance agent, it’s essential to enjoy interacting with people and helping them genuinely. Agents often receive recommendations based on the quality of service they offer to their clients. Customers particularly value timely responses and easy accessibility. Therefore, it’s crucial to be available when your services are needed. If you’re wondering how to become a licensed insurance agent, remember that building strong relationships and being responsive to client needs are key components of the role.

Here are some other skills you should have as an insurer:

• Good with math
• Good at listening to people
• Able to quickly respond to questions and claims, willing to contact a customer at any time.
• Able to do basic photography
• Some who is on time for every appointment

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This article, "How to Become a Licensed Insurance Agent" was first published on Small Business Trends

What is Farmers Market Insurance?

Farmers’ market insurance is a specialized type of insurance designed to provide coverage to vendors who participate in farmers’ markets. It typically includes general liability coverage, which protects against claims of bodily injury, property damage claims, or the medical costs associated with personal injury that may occur at the market.

This type of insurance coverage is essential, as unexpected incidents can occur even in the safest environments. For instance, what if a customer trips to the rented premises? Farmers market insurance can also provide coverage for product liability, protecting against any claims that may arise from products sold at the market. Overall, farmers’ market insurance serves as a vital safeguard for small businesses involved in farmers’ markets.

Why do Vendors at Farmers Markets Need Insurance?

Farmers market businesses and property owners are exposed to a range of risks when vendors participate in a farmers market. Without proper insurance coverage, these risks can be financially devastating.

Are you still curious about why vendors at farmers’ markets require general liability insurance? Take a moment to think about the following:

• Accidents happen – Vendors at farmers’ markets frequently work with sharp tools, hot stoves, and heavy equipment, elevating the risk of accidents. An incident could be as straightforward as a customer slipping into the area rented by the vendor. If either a customer or vendor sustains an injury, general liability insurance can assist in covering medical expenses and legal fees related to the event.
• Products can cause harm – Even if a vendor takes every precaution, their products can still cause personal injuries to customers. If a product sold at the farmers market causes an illness or injury, general liability insurance can help cover the cost of legal defense, medical expenses, and damages.
• Property damage can occur – Vendors might accidentally damage property used for business purposes, such as the market’s equipment or a neighboring vendor’s goods. If this happens, general liability insurance can cover the cost of repairs or replacement.
• Lawsuits can be expensive – If a customer or property owner brings a lawsuit against a vendor, the resulting legal fees and damages can have a severe financial impact. General liability insurance can assist in covering the costs associated with legal fees, settlements, and judgments.
• Meet market requirements – Numerous farmers markets mandate that vendors obtain general liability insurance to participate. Without this coverage, vendors may be unable to take part in the market, potentially losing out on important business opportunities.

What does Farmers Market General Liability Insurance Cover?

Farmers market insurance is designed to cover a wide range of incidents that can occur while participating in a market. While claim scenario circumstances vary, the following five common claims typically are covered by farmers market insurance.

• Bodily Injury – If a customer or vendor is injured while at the farmers market, general liability insurance can help cover the medical expenses associated with the incident. This can include everything from cuts and bruises to more serious injuries like broken bones.
• Property Damage – Vendors may unintentionally cause damage to property, such as the market’s equipment or the merchandise of nearby vendors. In such cases, general liability policies can help cover the expenses for repairs or replacements.
• Product Liability – Despite a vendor’s best efforts to ensure safety, their products may still result in harm to customers. Product liability insurance offers protection against claims related to injuries or illnesses that may arise from their products.
• Personal Injury – General liability insurance also can cover claims of personal injury, such as slander or libel, that could arise from a vendor’s actions or statements.
• Advertising Injury – This type of coverage can protect vendors from advertising injury claims, such as copyright infringement or false advertising. This coverage can be especially important for vendors who rely on advertising to promote their products and grow their businesses.

How Much Does Insurance for the Farmers Market Cost?

Farmers market insurance costs can vary depending on a variety of factors, including the location of the market, the type of products being sold and the coverage limits selected by the vendor. On average, vendors can expect to pay between $200 and $500 per year for a basic general liability policy. However, prices vary widely, with some policies costing as little as $100 and others costing upwards of $1,000 per year.

Some vendors opt to obtain additional coverage, such as product liability insurance, which can raise the total expense of their farmer’s market insurance policy. It is crucial for vendors to assess their insurance requirements thoroughly and compare different providers to find the most competitive farmers’ market insurance cost and coverage options that fit their budget.

Best Companies for Farmers Market Vendor Insurance

Choosing the right insurance company is crucial for farmers’ market vendors who want to protect their businesses from potential risks and incidents. Whether you’re a first-time vendor or a seasoned professional, working with an experienced insurance agent can help ensure that you have the coverage you need to succeed at farmers’ markets.

ACT Insurance

ACT Insurance offers tailored coverage options for farmers’ market vendors, including general public liability insurance and product liability insurance. Their policies are specifically designed for small businesses and can be customized to meet the unique requirements of each vendor. With over 30 years of experience in the insurance sector, ACT Insurance has built a solid reputation for providing dependable and affordable coverage to farmers’ market vendors across the country. Clients can also enhance their protection by adding options such as commercial auto insurance and workers’ compensation insurance, ensuring they have comprehensive coverage for their businesses.

RVNA Insurance

RVNA Insurance is a well-known provider of farmers market insurance, offering a range of coverage options to meet vendors’ unique needs. Its policies include both general liability coverage and product liability insurance. RVNA’s policies even can be customized to include additional coverage options like commercial auto insurance or workers’ compensation insurance to provide comprehensive protection for vendors’ businesses.

 The Hartford

The Hartford is a reputable insurance company that provides farmers market insurance coverage to small businesses. Its policies include general liability coverage as well as product liability insurance. With the option to customize policies, vendors can choose the right coverage limits and add-ons to meet their unique needs. Likewise, The Hartford’s farmers market insurance can protect business equipment, such as market stands or inventory, as well as for losses due to weather events or other unforeseen circumstances.

K&K Insurance

K&K Insurance is a prominent provider of insurance coverage tailored to farmers’ market vendors. Their policies encompass general liability and product liability coverage. Specifically designed for farmers market businesses, K&K Insurance policies can be customized to address the individual needs of each vendor. Additionally, K&K Insurance’s farmers market policies may offer coverage for business interruption and equipment breakdowns, ensuring comprehensive protection for vendors’ operations.

USI Affinity

USI Affinity is a trusted provider of farmers market insurance, offering customizable coverage options for vendors. Its policies include general liability coverage and product liability coverage. With the option to add additional coverage options like commercial auto insurance or workers’ compensation insurance, vendors can tailor their policies to meet their specific business needs. Moreover, USI Affinity provides claims handling and risk management support, ensuring vendors have access to the resources needed to succeed at farmers’ markets.

Thimble Insurance

Thimble Insurance is a popular insurance company that offers farmers market insurance policies tailored to meet the unique needs of small businesses. Its policies include general liability coverage and product liability coverage. Vendors can customize their policies and purchase coverage by the hour, day or month, providing flexibility and affordability for vendors with fluctuating insurance needs and business hours. With more than 100,000 policies sold to date, Thimble Insurance is a reliable provider of farmers market and business property insurance.

American Family Insurance

American Family Insurance is a reputable provider of insurance coverage for farmers market vendors. Its policies include general liability coverage and product liability insurance. Vendors can customize their policies to meet their unique needs, including options for property damage coverage, equipment breakdown coverage and business interruption coverage. American Family customers can even consider bundling their farmers market coverage with other insurance policies, such as personal auto or property insurance. American Family Insurance’s farmers market policies can provide peace of mind for vendors, allowing them to focus on growing their businesses.

Farmers Insurance Group

Farmers Insurance Group is a well-known insurance company that provides farmers market policies for small businesses. Its policies include general liability coverage, as well as product liability coverage. With the option to add additional insured elements like commercial auto insurance or workers’ compensation insurance, vendors can tailor their policies to meet their specific needs. Moreover, Farmers Insurance Group provides risk management services, such as safety resources and loss control assistance, to help vendors mitigate potential risks.

Food Liability Insurance Program

The Food Liability Insurance Program is a specialized insurance program designed specifically for small food businesses, including farmers market vendors. Its policies include general liability coverage and product liability coverage for food vendors. Vendors can customize their policies to meet their unique needs, including options for property damage coverage, equipment breakdown coverage, and business interruption coverage. With more than 30 years of experience in the insurance industry, the Food Liability Insurance Program is a trusted provider of farmers market and food products insurance.

Zensurance

Zensurance is an insurance company offering farmers market insurance policies tailored to meet the unique needs of small businesses. Its policies include both general liability coverage and product liability coverage. Plus, vendors can customize their policies and purchase coverage online, providing a streamlined and efficient process for obtaining insurance. Zensurance also offers risk management services like food safety, resources and loss control assistance to help vendors mitigate potential risks. With more than 10,000 policies sold to date, Zensurance is a reliable provider of farmers market insurance.

Which is the Best Private Insurance Company for a Farmers Market Vendor?

It’s difficult to determine the “best” private insurance product for farmers market vendors since the needs and preferences of each vendor vary. Some popular options for farmers market insurance include K&K Insurance, Thimble Insurance and USI Affinity. However, vendors should research and compare business insurance policies from several different insurance companies before deciding on purchasing insurance.

Factors to consider when choosing the best farmers market insurance policy include coverage options, premiums, deductibles, and the level of customer service offered by insurance agents. Ultimately, the best private insurance company for a farmers market vendor will depend on their business operations, needs, and circumstances. It is important for vendors to carefully evaluate their options and select a business insurance policy that provides the necessary coverage and protection for their businesses.

Read More:

• How Much Does Small Business Insurance Cost?
• Where to Buy Small Business Insurance Online
• Do You Need Small Business Liability Insurance?
• 22 Things to Sell at Farmers Markets
• How to Sell at a Farmers Market: Your Complete Guide

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This article, "Everything You Need to Know About Farmers Market Insurance" was first published on Small Business Trends

In today’s market, small business owners who hope to recruit and retain outstanding employees can’t help but offer health insurance plans to their staff. Not only do health benefits make workers more likely to stay with their companies, but a healthier workforce is also a more productive one. Of course, obtaining affordable health insurance plans for small teams can be a challenge. Fortunately, health insurance options specifically for small businesses are available.

What is Health Insurance for Small Businesses?

While the Affordable Care Act stipulates small businesses with fewer than 50 employees are not required to provide health insurance to their employees, that doesn’t mean that they can’t offer the option to attract the best and brightest workers. Fortunately, there is plenty of health insurance for small businesses to choose from.

How much does small business health insurance cost? It varies. Many consumers have found that obtaining health insurance coverage as a small business is more affordable than for individuals seeking insurance on their own. Through a small business health insurance option, a company contributes toward a portion of the cost as a part of the workers’ salary, and then each employee pays the difference through a payroll deduction.

What the small business health insurance plan covers will vary depending on the insurance company and the options purchased, but some basic healthcare costs are always covered by law.

How Does Health Insurance for Small Business Work?

How does health insurance for small business work? A small business owner can choose a plan that best meets their coverage and cost needs. The business pays a portion of the premiums, and employees usually are responsible for the difference in the premiums paid as a payroll deduction. Then, when an employee seeks healthcare, they pay copays, deductibles, and other noncovered costs while the insurance company pays the rest of the medical bill, provided it is not out-of-network care.

What Does Health Insurance for Small Business Cover?

Like other health insurance, small business health coverage benefits cover a variety of medical services, although how much coverage can vary greatly between plans. Common coverages include:

Prescription Drug Coverage

Small business health insurance covers prescription drugs, although specific costs and restrictions will vary based on the insurance company and insurance plan.

Emergency Care Coverage

Small business health insurance offers emergency care coverage, paying a portion of the cost when covered patients receive emergency medical care. Of course, the amount of out-of-pocket expenses will vary based on the health plan and the insurance company.

Outpatient Care Coverage

Small business health insurance includes coverage for outpatient healthcare as part of its benefits. The specific limitations on services and out-of-pocket expenses may differ depending on the health plan.

Maternity Care Coverage

Health insurance companies include maternity and prenatal care within the benefits of small business health insurance. Typically, patients with coverage experience minimal out-of-pocket expenses when delivering a baby; however, the specific amount may differ depending on the health plan.

Preventative Healthcare Coverage

Many preventative healthcare services are covered in full by small business health insurance. The ACA dictates that certain preventative screenings and other healthcare be fully covered, but be sure to check the specific offerings of each available health plan.

Mental Healthcare Coverage

Small business health insurance also covers mental healthcare, including many inpatient and outpatient mental health services. The exact coverage options will vary depending on the best health insurance providers and the group plans.

Other Medical Services

Many other healthcare services, including those for pre-existing conditions, are covered by small business health insurance providers. However, since group coverage can vary, it’s essential for small business owners to explore the different coverage options offered by various medical plans before choosing the best one for their company and employees.

What is Not Covered by Small Business Health Insurance Policies?

While most small business health insurance benefits are fairly comprehensive and cover a variety of healthcare services, health insurance still has its limitations and options it does not cover, including:

• Elective and cosmetic procedures – Most health insurance will not cover cosmetic procedures and will have many restrictions and limitations on what it considers elective procedures if it covers them at all.
• Out-of-network services – Numerous health insurance companies establish a network of healthcare providers with which to collaborate. If a covered patient receives medical care outside of this network, they may not be eligible for coverage.
• Experimental or new technology – A small business health insurance benefits package often will exclude coverage of procedures, devices and drugs it deems as too new or still in an experimental phase.
• Off-label drug use – While many physicians will prescribe drugs for an off-label purpose, many insurance companies will decline to pay for those prescriptions.

Do Small Businesses Have to Offer Health Insurance and Health Benefits?

Under the U.S. Affordable Care Act, small businesses with fewer than 50 employees do not have to provide health coverage to their workers. Larger companies that fail to provide health insurance benefits to their employees face financial penalties from the government. Many small business owners, however, choose to offer group health insurance plans as an added benefit in order to recruit and retain the most talented workers. Small business employees who are not otherwise covered might be eligible for special plans through the ACA marketplace.

What Are the Small Business Health Insurance Options?

A variety of health insurance options are available to small business owners, including:

• Under the ACA, small business owners can purchase health insurance for their employees through an approved insurance company with the Small Business Health Options Program (SHOP). By providing health insurance with a SHOP plan, employers can offer plans from a variety of insurance companies. Small business owners providing SHOP health insurance to their employees might qualify for a Small Business Health Care Tax Credit, which can help with the cost of providing coverage.
• Small business group health insurance options are categorized by tiers, each featuring varying monthly premiums, copays, and out-of-pocket limits. This way, people can choose whether they want higher premiums with more extensive coverage or more cost-effective health insurance that might have more limitations and restrictions on what it pays. A group health insurance plan might offer options in gold, silver, bronze, and platinum tiers.
• Small business owners also can choose to work with an insurance broker who will research and compare available health insurance plans to determine the best option for a small business at no additional charge. The broker can help the small business owner understand options like HMOs, PPOs, association health plans, health reimbursement arrangements and even health insurance acronyms.
• A small business health insurance plan can facilitate the establishment of a Health Savings Account (HSA) for small businesses. This enables eligible employees to contribute pre-tax funds to the HSA, which can then be utilized to cover healthcare expenses that are not included in their insurance coverage.

Laws on Small Business Health Insurance Plans and Requirements

In the United States, small business health insurance is regulated by the same legislation that applies to many other healthcare plans: the Affordable Care Act (ACA). Fully implemented in 2014, this law mandates that most U.S.-based employers with 50 or more employees offer health insurance options to their staff. Additionally, it specifies the types of coverage that insurance companies must provide in their health plans. The ACA also created a health insurance marketplace, allowing consumers and small businesses to compare and select the best and most affordable health insurance options available.

Although the ACA does not mandate that most small businesses provide health insurance for their employees, it has benefited small business owners by creating the SHOP network. This network allows them to select from a range of insurance companies and health plan options.

Employers who offer health insurance benefits to their employees also must abide by COBRA. Under this law, when an employee is terminated they must be offered the opportunity to extend their health insurance coverage for one of three maximum coverage periods. Likewise, employers who offer health insurance to their workers must also follow the Health Insurance Portability and Accountability Act (HIPAA), which safeguards employees’ private personal and medical information.

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This article, "Small Business Health Insurance – What You Need to Know" was first published on Small Business Trends

Small business owners and their employees can stretch their dollars further by establishing a health savings account. With a health savings account, participants are empowered to save earnings and more wisely spend money on healthcare expenses. While it might be easy to assume this tax-advantaged account is a benefit available only to large companies, the option is also a possibility for small businesses.

What is a Health Savings Account?

What is a health savings account HSA, and why is it a good option for small businesses? An HSA is a tax-advantaged medical savings account that allows participants to save pre-tax dollars for future qualified medical expenses.

By using untaxed dollars to pay for health care costs like health insurance copays and deductibles, dental and vision expenses, prescription drugs, and certain other healthcare costs not covered by insurance, qualifying U.S. participants can stretch their earnings further while ensuring they have the funds they need when healthcare expenses arise. Balances can be carried forward from one year to the next, unlike some other health reimbursement arrangements.

Unlike a flexible spending account, an HSA for small business is available exclusively to individuals who have a qualifying health insurance plan, such as a high deductible health plan. Contributions to the HSA can be made by the individual, their employer, or both, and there are annual contribution limits set for each tax year. Providing a health savings account alongside an HDHP is a more cost-effective health benefit option compared to traditional health coverage.

Can a Small Business Have an HSA?

Even though small businesses with fewer than 50 employees are not required to offer health insurance as part of their benefits package, many choose to provide their workers with health savings accounts and a high deductible health plan.

Providing an HSA for small business not only benefits employees, but it also allows employer contributions to be tax-deductible. Additionally, since HSAs do not have contribution minimums, small business owners can determine the amount they wish to contribute. Employees can also set aside their own pre-tax funds to cover medical expenses, with all contributions easily managed through payroll deductions.

• READ MORE: small business health insurance

Benefits of Health Savings Accounts

What are the advantages of HSA for small businesses? Americans who have a high deductible health plan can take advantage of a health savings account in numerous ways, including:

Pay for Many Qualified Medical Expenses

HSA account holders can use the funds to pay for a variety of qualified medical expenses, including deductibles and copays, dental expenses, and vision costs like eyeglasses and prescription drugs. The HSA offers the peace of mind that when future medical expenses are incurred, money is there to help pay for them.

Save on Taxes

Multiple Internal Revenue Service tax advantages exist for establishing a health savings account. When an employer adds tax-free money to an employee’s account, the donation can be claimed as a federal income tax deduction. When an employee deposits money into the account, it generally occurs as a payroll deduction in pre-tax dollars, so it reduces the employee’s taxable income. Then, when HSA money is used for qualified medical expenses, the funds are tax-free distributions.

Stretch Your Dollars

HSAs provide participants the opportunity to maximize their hard-earned money. By contributing pre-tax dollars to a health savings account, individuals can stretch their funds further. Without this advantage, the same amount of money would be subject to taxation, diminishing the amount available for healthcare expenses. Additionally, the funds in the HSA account earn tax-free interest while they remain there.

Control Healthcare Spending

An HSA empowers participants to take charge of their healthcare expenses. By contributing to an HSA account, employees have the flexibility to determine how and when to use the funds, including any contributions made by their employer. The money in the account is permanently owned by the participant, and it does not expire if it remains unused within a specific tax year. Moreover, employees can carry their funds with them if they switch jobs or health plans.

Invest for Retirement

Once an HSA participant reaches retirement age, they can utilize their funds for various purposes without incurring a tax penalty. Many account holders may opt to invest their HSA money in mutual funds to support themselves during their golden years. Alternatively, they can choose to save the funds indefinitely to prepare for future healthcare expenses.

Best Health Savings Account Options

Perhaps you’ve researched health savings accounts, compared to flexible spending accounts and other health care coverage, and you’ve decided an HSA is the best choice for your small business. Maybe you’ve even pored over health insurance acronyms trying to understand it all. Now it’s time to choose through what financial institution you’ll establish the HSA. Fortunately, a variety of options are available, each with its own benefits. Some of the most popular HSA choices include those from:

HealthEquity

Named one of the best financial institutions to provide HSAs, HealthEquity is popular since it lets customers invest in Vanguard funds with low expense ratios. HSAs with HealthEquity feature a mobile app with no account management fees, and the company offers accounts with no minimum investment threshold, so every dollar added to the HSA is invested right away.

The HSA Authority

The HSA Authority is a great option for family coverage thanks to its extensive online account management options that let users delegate financial tasks to other members. The online portal also features other web-based services including online bill pay, text banking, mobile deposits, and e-statements.

HSA Bank

It’s simple to open an HSA with HSA Bank thanks to no required minimum balance, and the task usually can be completed in less than 10 minutes. Users can invest their funds into TD Ameritrade or Devenir, and health savings accounts through HSA Bank feature no account management fees with at least a $3,000 balance.

Lively

With no fees to open or maintain an HSA, Lively is a great choice for opening a health savings account. Users can easily open and fund their accounts online, and they can invest their funds with TD Ameritrade. Lively’s mobile app even lets users track their HSA funds on the go, offering them maximum control over their investments as they use a free debit card to pay for qualified medical expenses.

Fidelity

With Fidelity, HSA account holders can invest their funds into high-quality or low-quality Fidelity mutual funds and index funds, and the service carries no account minimum balance requirements or account management fees. Fidelity HSA customers also receive a free debit card to pay for qualified medical expenses.

Further

Further has been called the best HSA provider for employers because of the varied types of accounts it helps to manage. Small business owners can choose Further to help oversee, for example, HSAs, flexible spending accounts, transportation reimbursement accounts, dependent care assistance programs and more. It’s a one-stop shop for employers adding investment and savings accounts to their benefit programs.

Optum Bank

Optum Bank has been recognized on the HSA Report Card’s shortlist of best HSAs for spenders. This designation is aimed at individuals who intend to use their funds for spending rather than saving or investing for the long term. Optum’s HSA offerings include an online tool for storing receipts, and users can even set their investments to auto-pilot, minimizing the effort required from the HSA account holder.

Elements Financial

Some HSA users will choose Elements Financial because they prefer a credit union as opposed to a corporate bank or large investment firm. Customers can set up an HSA, but they can also open a checking or savings account from the same institution. The Elements Financial HSA program features free debit cards to pay for healthcare expenses, as well as online banking and investment options.

How to Set Up an HSA for Your Small Business

Setting up a health savings account is a simple and straightforward process, but it’s important to follow the proper steps to comply with the Internal Revenue Service, much like other tax-favored health plans. Ready to start the processing of setting up an HSA? Just follow the following steps:

1. Determine plan eligibility – Ensure that you select a health plan that qualifies for HSA. It’s important to note that small businesses with fewer than 50 employees are not mandated to provide health insurance; however, they have the option to offer an HSA-eligible plan.
2. Decide on contributions – Will the business contribute to employees’ HSA plans, and how much will each participant contribute to their own health savings account? Employers can contribute any amount between $0 and the plan’s maximum contribution, and the contributions carry tax savings. Likewise, any contributions made by an employee are not subject to payroll tax.
3. Create a Section 125 cafeteria plan – By establishing a section 125 cafeteria plan, both employers and employees can contribute tax-free dollars toward their HSAs. This type of plan is available to employees, their spouses, and dependents, and it can be created by a business or a payroll service.
4. Manage contributions and tax documentation – The easiest way to manage HSA contributions and all the proper tax documentation is to employ the services of an HSA administrator, often available through the financial institution managing the health savings account.
5. Encourage employees to open an HSA – HSA accounts are owned entirely by the employee, and their participation is vital to offering the option as a small business. Make sure employees fully understand the tax benefits of establishing the HSA. Be sure and explain the basics of how an HSA works and how to use one, as well as what expenses are covered.

What is the best HSA?

The top provider of health savings accounts is HealthEquity. Account holders can invest in Vanguard funds with low expense ratios, and the provider features a user-friendly mobile app, a debit card for out-of-pocket expenses, and no account management fees. Additionally, HealthEquity has no investment threshold, meaning that every dollar contributed to an HSA is invested immediately.

What are the disadvantages of HSA?

Despite all its benefits, there are still some disadvantages of an HSA. Before establishing a health savings account for your small business, consider the following drawbacks:

• HSA requires an HDHP for an insurance company – A High-Deductible Health Plan is required to qualify for an HSA, which can result in a greater financial burden than other types of health insurance.
• HSAs can pressure account holders to save – Some people might be more reluctant to seek healthcare when they need it because they don’t want to spend the money in their HSA account instead of saving it for retirement.
• HSAs can result in tax penalties – If not used properly, an HSA could result in a tax penalty. If funds are withdrawn for a non-covered expense before the age of 65, the money becomes subject to income tax and penalties.
• HSAs require recordkeeping – Some individuals may hesitate to engage in an HSA for small business due to the necessity of maintaining receipts that verify withdrawals were made for qualified medical expenses.

Is HSA Worth it for Self-Employed?

A health savings account can be a good option for self-employed individuals in the United States. While many health insurance premiums might be too expensive for entrepreneurs and small businesses, high deductible health plans with a health savings account can be a more affordable option that still helps fund healthcare expenses and reduce taxable income since the money is paid before income tax is subtracted. An HSA can also serve a dual purpose, as unused funds can be saved for retirement.

READ MORE:

• Small Business Health Insurance
• How Much Does Small Business Health Insurance Cost

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This article, "Health Savings Account (HSA) for Small Business – What You Need to Know" was first published on Small Business Trends

For small business owners, the costs of providing health insurance for you and your employees can vary depending on multiple factors, but it’s almost always a significant expense. Regardless, health insurance is still a benefit many small business owners strive to offer their employees, helping them to attract and retain top talent.

Even as far back as 2012, healthcare costs were a big concern for small business owners and their employees. The Affordable Care Act helped open the insurance marketplace up to small businesses, offering more options to smaller teams, but higher health costs prompted some owners to sell their small business. How can a small organization provide health insurance plans if no affordable options are available?

Of course, small businesses with fewer than 50 employees are not mandated by the Affordable Care Act to offer health insurance coverage. However, this doesn’t imply that these companies cannot reap the benefits of providing health insurance. In fact, offering health insurance can contribute to a healthier workplace, provide employees with peace of mind, and give small businesses a valuable competitive edge.

How does small business health insurance function, and what are the associated costs? If you’re concerned about healthcare expenses for your small business, continue reading to discover ways to alleviate your small business healthcare concerns.

How Does Health Insurance Work?

How does health insurance work? While health benefits vary based on the plan and insurance company, most health insurance providers follow the same basic concept. Individuals can choose their own plans through the health insurance marketplace, or a company offering health insurance can choose to offer a group health plan.

In the latter case, the company pays a portion of the insurance premium, while the remainder is deducted from each employee’s paycheck. According to an NBGH survey, employers covered nearly 70% of the cost of health insurance premiums in 2020, while employees paid 30% on average.

The plan will have a policy that dictates all the details of what healthcare costs are covered and how much is paid. When a covered person receives healthcare, the medical provider will bill the health insurance company for its determined coverage amount, while the patient is responsible for paying any deductibles, copays and noncovered costs. Most health insurance companies will offer higher premiums for lower co-sharing costs and vice versa.

Small Business Health Insurance Costs

How much does small business health insurance cost? Determining the cost of small business health insurance is a complicated process that accounts for multiple factors. Why doesn’t everyone pay the same? To understand small business group health insurance plan costs, be mindful of the following considerations.

Location

Due to variations in competition, state and local regulations, and the cost of living in different areas, health insurance costs can differ significantly from one location to another.

Age

Health insurance companies recognize that healthcare costs tend to rise as individuals age, leading them to impose higher premiums on older customers. In fact, premiums for older adults can be up to three times greater than those for younger individuals.

Tobacco Use

Insurance companies can charge tobacco users as much as 50% more than those who do not use tobacco because of the higher health risks associated with the behavior.

Individual vs. Family Coverage

Insurers may charge higher premiums for plans that provide coverage for a spouse and dependents compared to those that cover only an employee or small business owner. However, individuals with multiple dependents typically pay a lower rate per dependent than the cost of covering just a single spouse or child.

Plan Category

Health insurance is available in five plan categories, which determine how costs are shared. For example, bronze plans typically boast lower monthly premiums and higher out-of-pocket costs when care is received. Platinum plans, on the other hand, will have the lowest out-of-pocket costs but the highest premiums.

Average Small Business Employee Health Insurance Cost

Employee premiums and group health insurance costs can vary greatly based on factors like location and employee’s age, but even group health insurance premiums have an average. According to a 2021 report from the Kaiser Family Foundation, the average annual health insurance premium for small firms – with a small firm being defined as a company with 199 or fewer employees – was $7,813 for single coverage and $21,804 for family coverage. Employers contributed an average of 83% of the single coverage costs, while they paid 63% of the family coverage premiums.

Under the Affordable Care Act, if an employer has fewer than 25 employees and their average wages are $52,000 or less, they may qualify for tax credits to help reduce the cost of small business health insurance. This eligibility applies if the employer covers at least half of their employees’ health insurance premiums.

Average Cost of Dental Insurance

Dental insurance is not mandated by the Affordable Care Act; however, many employees consider it an important benefit. The good news is that providing dental insurance is significantly less expensive than offering health coverage. In fact, group dental insurance plans cost employers between $8.94 and $13.90 each month, with the precise monthly cost varying based on the insurance carrier and the level of coverage chosen.

Average Cost of Vision Insurance

Vision insurance can be an affordable benefit for small business owners to offer their employees. These policies typically cover an annual eye exam, and they might offer limited coverage or reimbursement toward the purchase of eyeglasses. While the benefit is a basic one, it’s a valuable perk for employees. The average vision insurance package costs a small business between $5 and $10 per month for each covered employee. A more comprehensive package can cost as much as $20 per employee per month.

Average Cost of Health Savings Accounts

Savings may be available on small business health insurance costs through a health savings account. Available to those who enroll in a high deductible health plan – which generally comes with a lower premium – an HSA is a tax-advantaged account created for or by individuals to save for qualified medical expenses. Money can be deposited into this account by the individual or by their employer as a part of the company’s health benefits.

While costs can differ, it’s essential to note that a high deductible health insurance plan only begins to provide benefits once an individual has incurred at least $1,400 in qualified healthcare expenses, or a family has spent a minimum of $2,800 in a covered year.

How to Save Money on Health Insurance Premiums

The costs of small business health insurance can accumulate rapidly, which may lead small business owners to feel overwhelmed when deciding whether to provide health insurance. Fortunately, there are strategies available to help lower the expenses associated with group health insurance plans, making health benefits more accessible and affordable.

• Shop around to find the right health insurance company. Look at the health insurance marketplace to see the different types of coverage and pricing plans available.
• Select a self-funded health insurance plan and contract directly with hospitals and doctors.
• Choose a high deductible healthcare plan and combine it with a health savings account.
• Obtain tax credits by offering a qualified healthcare plan through the SHOP marketplace.
• Boost your buying power as a small business by partnering with a third-party provider.
• Engage with an external benefits provider to pinpoint areas of financial inefficiency within your current group’s health insurance plans.

READ MORE:

• Small Business Health Insurance

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This article, "How Much Does Small Business Health Insurance Cost?" was first published on Small Business Trends

What would you do if your business was interrupted by a natural disaster or some other type of emergency? Or, in the case of a lightning strike frying all of the essential equipment needed to operate, your business had to close its doors for an extended period of time? What then? If you don’t have business interruption insurance coverage, you could be out of luck. This is why it’s critical for business owners to take out a business income coverage policy.

What is Business Interruption Insurance?

Business income insurance, commonly referred to as business interruption insurance, is a crucial type of business insurance that helps safeguard your business against significant financial losses due to interruptions or closures. It provides protection to entrepreneurs from lost income and other associated expenses when a covered event, such as a fire or falling objects, disrupts operations.

The time that the insured company is shut down and repaired is what is known as the restoration period. This period typically has a time restriction, which is usually 30 days. Fortunately, business owners can often extend the restoration period included in their policy for an additional cost.

Why You Should Take Out a Business Income Coverage Policy

No one knows when an emergency will happen, but that doesn’t mean businesses shouldn’t be prepared. If something does go wrong and your business is forced to close, you could lose a lot of money. This problem is especially true for small businesses, which often don’t have the same financial cushion as their larger counterparts.

The business insurance benefits that this type of insurance brings can help you:

1. Replace lost income: If your business must close, this policy will assist in replacing the net income you would have earned had you been operating normally.
2. Cover additional expenses: If you need to move your business due to a covered emergency, this policy will assist in covering the additional costs that arise from the relocation.
3. Cover the cost of moving to a new or temporary location: If you have to temporarily or permanently relocate your business due to a covered event, this policy can help pay for the costs associated with doing so.
4. Pay for additional expenses related to the interruption: Business interruption coverage can also help pay for things like the loss of business records and temporary employee costs.
5. Training costs: Business interruption insurance can help pay for the training cost for personnel to learn how to operate new equipment.

Bear in mind the lost net income amount of a business an insurance company considers is based on its financial records. Your insurance company will likely ask you to provide P&L statements, sales records, payroll records, tax returns and any other information that declares your income and expenses.

What Expenses are Covered by Business Income Coverage?

The loss of business income and the operating expenses that result from a covered emergency are what business income coverage is designed to cover. But it’s important to note that not all expenses related to your interrupted business operations are covered by this type of policy.

Policies can differ, but some common examples of operating expenses covered by this kind of insurance include:

• Expenses used for temporary or permanent relocation.
• Wages for temporary employees.
• Loss of business records.
• Extra expenses to keep the business running.
• Taxes and routine bills.
• Payroll expense.
• Mortgage, lease and loan payments.

What Does Business Interruption Insurance Cover?

Covered natural or manufactured disasters largely depend on the policy’s terms, but they generally include damage from:

Fire

A fire can quickly destroy a business’s property, equipment and inventory. This disaster could leave the building uninhabitable and damage or destroy goods just before they were scheduled to ship to customers. Business income insurance coverage can assist with the loss of business income due to the slowdown or temporary closure of the business. In addition, if the business needs to move because of a fire, the coverage can also help with the cost of the move.

Wind

High winds can knock down trees or power lines, causing extensive damage to your business property. Often, business interruption insurance works together with commercial property insurance to pay for repairs. For instance, the insurance for the commercial property could pay for roof repairs. In contrast, business interruption insurance can help you recoup any lost income resulting from the business closure due to the wind severely damaging the roof.

Falling objects

If an unexpected event affects your business, such as a falling tree, hail, boulder, or debris from another building, business interruption insurance can compensate for the loss of income while you make repairs and reopen. However, if the incident involves someone else’s equipment, a portion of a building, vehicle, or aircraft impacting your property, the general liability insurance of the responsible party will cover the legal costs and damages, which may also include compensation for lost income during the shutdown.

Lightning

A lightning strike can inflict physical damage to a business owner’s property in various ways. Firstly, it may ignite a fire at your establishment or damage your electrical wiring. Secondly, it can harm essential equipment. While property insurance can assist with the repair or replacement of damaged assets, business interruption insurance can help cover your lost income if you need to close or relocate due to lightning-related damage.

Theft

The type of insurance coverage that applies to theft will depend on whether the person works for you or not. If they don’t work for you and their thievery affects your business, then business interruption insurance can help cover the costs. If an employee commits fraud or theft, then fidelity bonds protect the company from financial losses. A Business Owners Policy (also known as a BOP) covers physical damage to the property and its contents during the commission of crimes like theft and robbery.

Civil unrest

Civil unrest is considered a covered event if you are forced to halt operations or limit hours due to it. Business income insurance will help you recover lost income in these circumstances. Therefore, if there’s a riot, looting, vandalism or other types of civil unrest in your area that causes a shutdown, this type of policy could reimburse you.

Read More: how much does business insurance cost

What’s Not Covered by Business Interruption Insurance

There are circumstances that insurance for business interruptions generally won’t cover. For example, business interruption coverage doesn’t pay for broken items or damaged assets that result from a covered event (commercial property insurance policies usually cover this); flood or earthquake physical damage, which is covered by a separate policy; undocumented income that isn’t listed on your company’s financial records.

In addition, the coverage doesn’t pay for the following:

• Losses caused by terrorism or war.
• Economic loss when a communicable disease causes business interruptions or closures.
• Utility services that are usually shut off when a business is under repair.
• In cases where the civil authority clause is used. This happens when a civil authority, such as a local state or federal governmental entity evacuates or prohibits access to an area after a natural disaster occurs. In these cases, civil authority coverage takes precedence over business income insurance, and the clause will outline whether or not the government will reimburse you for your lost income.
• Workers’ compensation. You will need to purchase workers’ compensation insurance separate from interruption insurance for employees injured on the business premises or working for you off-premise.

Does Business Interruption Insurance Cover Covid-19 Shutdowns?

It’s a hotly debated topic, but the insurance industry’s stance is that there is generally no coverage for pandemics. However, that fact hasn’t stopped firms who think their losses should be covered and are pursuing lawsuits against insurance companies. Still, there are insurance companies that cover businesses affected by the coronavirus.

Check the wording of your policy to see if it a pandemic is explicitly excluded or included. You can also talk to someone at your insurance company to see if they can include this type of coverage.

How Much Does Business Interruption Insurance Cost?

So, how much does business insurance cost? Prices for business interruption insurance vary, depending on factors, such as:

• The size of your company.
• Type of industry.
• Number of employees.
• How much coverage you need.
• Your deductible.
• The location of your business.
• Value of your inventory.
• How often you file claims.
• Whether you have other policies with the same insurer.

The businesses’ gross earnings are also a factor that insurers will consider when setting rates. As a general rule, the higher the gross earnings, the more coverage you’ll need. Your policy should have enough coverage to replace all of your lost income, as well as your ongoing expenses.

Insureon provides a helpful benchmark for what you can anticipate when seeking a quote for this type of business insurance. According to the small business insurer, a business owner can expect to pay between $40 and $130 per month, or $480 to $1,560 per year for the policy. If you are uncertain about the amount of coverage you require, it is advisable to consult with an insurance agent.

How to Choose the Best Small Business Interruption Coverage

As you can see, it’s essential to get the best business interruption coverage for your needs and to help your business recover—there is simply too much at stake to leave things to chance.

Here are some factors to consider when choosing the best coverage from your insurance company:

• Your business interruption insurance should cover your business’s gross earnings. This will help you to be able to continue making a profit after an unexpected event. An insurance agent can help you calculate your business income for insurance.
• Ensure you have adequate coverage and the appropriate type of coverage to restore your business in the event of damage.
• Consider adding extra expense coverage for property damage and loss of income.
• If your business operates mainly online or relies heavily on computers, consider whether you need coverage from a casualty insurance company instead of just having business interruption insurance, or if you require both types of coverage. A casualty insurance company can offer the appropriate insurance to protect you against cybercrime, website damage, and other related liabilities.

Also, it’s a good idea to find out the following:

• Does the insurance company you are considering offer the best rates and service?
• Does your insurance company bundle the different business insurance coverages you need to cover losses?
• Does the insurance company pay claims quickly, or are there long wait times?

Read More: best small business insurance companies

How to Get Business Income Insurance

The following steps outline how a business owner should go about getting their business income insurance policy:

1. Consult with a business attorney: There are many gray areas when it comes to business interruption insurance. A business attorney can help you understand your policy language and help you understand if any extra expense or certain event is covered.

2. Consult with your accountant about insurance options: Accountants can assist you in comprehending the financial implications of a business interruption and determine the appropriate level of coverage needed to safeguard your business.

3. Talk with your peers and compare: As a business owner, it’s important to get an idea of what other small business owners are paying for similar coverage, especially if they conduct business in the same area where your business is located.

4. Meet with insurance agents: A reputable, licensed insurance agent can help you find the best policy for your business and ensure that you are fully protected in the event of a business interruption.

5. Do your research: Understand the ins and outs of all business insurance policies. Then, compare rates from several insurance companies before making a decision.

6. Bundle your policies: You can talk to your insurance company about bundling different business insurance policies together to save money. For instance, a standard business interruption policy can be bundled with a property insurance policy. Or both of those policies and others can be bundled as part of a business owner’s policy (BOP).

7. Assess risk: Evaluate all the risk factors associated with your business and compare them to your coverage limit. If the potential for a disaster is significant and your current coverage limit is insufficient, you may need to acquire additional coverage. For instance, if your business is located in a flood-prone area, it might be necessary to obtain extra flood coverage.

8. Reassess every year: Review your policy annually to ensure that you have the best protection in place for your business.

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This article, "What You Need to Know About Business Interruption Insurance" was first published on Small Business Trends