When you own a business, you need to protect both the business and your assets. A business owner’s package gives you the most common insurance coverage you need to do that.
What is a Business Owner’s Package?
A business owner’s package is sometimes also called a business owner’s policy or just business insurance. It’s a bundle of different insurance coverages, such as liability or property coverage. Many insurance companies offer packages tailored to each type of business, so you can choose your profession and get all or most of the coverage you need in a single transaction.
Which Businesses Need Insurance?
All businesses should consider buying insurance. Even if you work in an office, there’s still a chance of someone getting hurt. You’ll also want to protect your building, furniture, computers, and other business assets. A single incident when you don’t have insurance could wipe out months of profits or even put you out of business.
Having business insurance can also protect your assets if you’re sued and don’t have enough business assets to cover the lawsuit. Keep in mind that even if you have a corporation or LLC, a lawyer could still argue that you are personally responsible for your actions or that your corporation or LLC wasn’t valid.
Are You Required to Have Business Insurance?
There is no general requirement to have business insurance. Some specialized or high-risk professions do have regulations that require certain types of insurance. If you rent your business location, your landlord may also require you to carry insurance.
What’s Covered by a Business Owner’s Package?
A business owner’s package can include many different types of coverages, but there aren’t really standard packages. Some insurance companies only include the basics, while others have more extensive coverages. Most will allow you to add additional coverages that aren’t included in their basic package. In some cases, you may need to buy a separate policy. Here are some of the common coverages you should be looking for.
- Commercial general liability coverage in case you injure someone or cause property damage.
- Property damage protection in case your tools, equipment, or other property is stolen or damaged in a covered incident.
- Business interruption insurance that replaces your lost income while your business is closed or reduced due to a covered incident.
- Malpractice or professional liability in case a mistake in your work injures someone or causes financial harm.
- Data breach coverage in case your customers’ personal information is stolen, and you need to pay for an investigation, credit monitoring, or monetary losses.
These coverages are usually not included in a business owner’s package, but the same insurance company may sell them and give a discount for buying multiple policies.
- Commercial auto insurance to cover your work vehicles as well as your vehicles when used for work.
- Workers’ compensation in case a worker is injured on the job.
- Umbrella insurance for both yourself and the business to cover claims in excess of your other insurance limits.
How Do You Buy Business Insurance?
If you work in a very common type of business, the insurance company may just ask you a few questions about how large your business is and how many locations you have. The process is about as quick as buying personal car insurance.
If you have a more complex or unique business that requires a more customized policy, the insurance company may ask you more questions, request business documents, ask you to schedule a meeting, or send an underwriter to visit your business.
What if You Already Have Business Insurance?
If you already have one or more business coverages but want a more complete business owner’s package, you can generally upgrade at any time. If you’re changing insurance companies, most policies give you a refund for the unused time on a policy you’re canceling.
What if You Don’t Need Everything in a Business Owner’s Package?
Even a slimmed-down business owner’s package may be too much for certain businesses. You may have other protections in place, or you may not have some of the risks that the package covers. You can buy most business insurance coverages as standalone policies if that’s all that you need.
Are There Restrictions on Who Can Buy a Business Owner’s Package?
Business owner’s packages are generally geared towards smaller businesses in low to moderate risk activities. Each insurance company sets its own eligibility requirements. Many of the same insurance companies will still serve businesses that aren’t eligible for a business owner’s package — you just need to buy the coverages you need individually.
Is Business Insurance Tax-Deductible?
You can generally claim business insurance as a tax-deductible business expense. The true cost of a business owner’s package is usually less than the sticker price due to the tax savings.
How Much Does a Business Owner’s Package Cost?
A business owner’s package typically costs slightly less than buying each included coverage individually. Pricing varies based on how risky your business is and how large it is. If you’re comparing pricing on two business owner’s packages, make sure they have identical coverages or you factor in the need to add coverage to the less-inclusive plan.
Get a Quote
Feldbruegge Insurance can help you figure out what insurance your business needs and which business owner’s package is right for you. We proudly serve local businesses in the Abbotsford, WI, area. Contact us now for a quote or more information.
