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Business insurance is an important aspect of the success of a business. It helps shield your business from certain unforeseen circumstances that would otherwise cause catastrophic effects to your business operations. Providing insurance for your business may shield you from certain losses, destruction, employee health, to mention but a few. Also, before selecting an insurance package, you need to evaluate your business needs because businesses vary in terms of their insurance needs. In this article, you will find the importance of business insurance and coverage of small and large businesses.
Importance of Business Insurance
Employee Health Insurance
Your employees are the most important assets that you have. They are the people behind the wheel in driving you towards achieving your company goals. Therefore, it goes without saying that you need to properly take care of them through the provision of adequate health insurance benefits. With this, your employees will feel protected and have peace of mind. In turn, you will see a reflection on their productivity towards your business which will increase and make your business successful.
Health insurance is one of the things that employees look for when applying for a job in any company. Therefore, with a good insurance plan, you attract talented individuals and retain your current workforce. In addition, with a business health insurance coverage, you will stretch the protection to an employees’ family. This will motivate the employees.
Abiding by the Law
Business insurance for your employees is very vital, and requirements vary from state to state across the country. Failure to having business insurance could cost you unnecessary fines, which is more expensive than getting business insurance.
Provides a Sense of Security
Business insurance provides confidence in lenders to offer you loans because most of your assets will be covered against various risks.
Worker’s Compensation
This covers an employee from any uncertainty that may occur while conducting their responsibilities on behalf of the company. Most states require a business to have a well-defined worker’s compensation that covers employees to risks such as diseases or injuries. However, if an employee sustains an injury away from the business premises conducting personal errands, the worker’s compensation will not apply in such a case.
Business Owners Policy
This policy is common for small businesses. It covers liability against client uncertainties such as injury and damage to the business premises. It covers the business assets from damage and any queries that may arise because of the company’s product.
General Liability
This type of coverage encompasses several risks and works hand in hand with premiums such as the BOP. It protects you from any injuries, damage to business property, health charges, and advertising injury as well. As a business leader, you need to evaluate your level of risk and get the right policy to cover your business. This will prevent unnecessary fines and lawsuits that may drag your business down.
The Difference Between Business Insurance for small and Large Companies
Business insurance may vary depending on the size of the business. The main difference between a large and small business is their employee numbers. That is, a large business may have more than 100 employees, while a small business has a smaller number of employees, usually around 50 to 100.
For example, in the case of a business health insurance, large companies are obligated by the law to source a reputable health insurance agency to offer health coverage to their employees. This agency then educates the employees on the terms stated on their insurance policies and then implements the policies for your business. For small businesses, they have a variety of options. They can choose to work with an insurance broker to provide business insurance to their small number of employees. However, it is important to be keen and ensure that the brokers are certified and legit. Also, ensure you get plans that will fit into your business framework and cover your risks.
Premiums differ depending on the size of the company. Small businesses receive premiums worth around $16000, while large businesses receive $17000. However, while there may be a small difference in the premiums, the employees in a small business may be required to pay a huge amount on their health coverage premiums compared to those working in large corporations.
The above information will help you know about business insurance and determine which insurance policy to get for your business.
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