Commercial Insurance Basics: Things Every Business Owner Should Know

One of the areas where many business owners struggle is ensuring adequate insurance protections for their investments. Unfortunately, insurance is one of those elements that's often misunderstood, and it leads to some potentially costly mistakes when you're not properly informed. Before you make any decisions about your company's commercial insurance portfolio, there are a few things that you should understand.

Even Sole Proprietors Need Insurance

You may have heard that you only need to worry about commercial insurance if you have employees. While there are some policies you'll need as an employer that you don't need as a sole proprietor, that doesn't mean sole proprietors don't need some coverage, too. You'll still want to protect your business investment with a commercial liability umbrella as well as property and product coverage. In fact, the higher the risk factors of the industry you're in, the more coverage you'll want to have no matter how many employees you have.

Commercial Auto Insurance Is Necessary If You Use A Vehicle For Business

You might think that you don't need to invest in additional coverage for your car if you're only using it for business purposes occasionally. You may think that, since you don't have an actual company car, you don't need commercial auto coverage. This isn't the case. In fact, most personal auto insurance policies exclude coverage for any commercial use of the vehicle, so you would need to have a commercial policy to cover any potential losses that may occur during that business use.

You May Need Workers' Compensation Coverage Even Without Employees

While workers' compensation coverage, at its core, is for employees, that isn't the only purpose that it serves. If you haven't invested in a workers' compensation policy yet because your small business doesn't meet the mandates or you don't have any employees, you may find that you miss out on some business agreements. Many independent contractors and service providers will require workers' compensation coverage before they work with your business. Consider investing in a policy now so that you have it before it's ever necessary.

These are three things that every business owner should know when it comes to commercial insurance coverage. The more proactive you are about your insurance protections, the less likely you are to face a catastrophic financial loss. Talk with a local commercial insurance agent today for more information and to establish the coverage package that's right for your company's unique needs. 

Turn to a company like United Counties Insurance Group to find out more.