No personal insurance plan really covers business liability. As a company, you need liability insurance to protect yourself if you are ever at fault for damages or even an inconvenience. For example, if you are running a hair salon out of your home and a customer trips on their way out, they could sue you for medical costs. If you do not have business liability insurance, you have to pay for the suit and any damages awarded out of pocket. This can bankrupt some small businesses, so be sure to get some form of commercial liability insurance.
Not all small businesses require commercial property insurance, though many do. If you are a health care provider who only does home visits, you probably do not need property insurance. However, those who run brick-and-mortar businesses should always invest in commercial property insurance, giving them access to funds in the event of fire, natural disasters, or other forms of property damage.
Some homeowners have a very comprehensive homeowner’s insurance policy. If you run your company out of your home, you may think this level of insurance is sufficient. Unfortunately, if you continue to run a business or commercial operation out of your home without informing your insurer, you risk being cut off from your plan altogether. This is one area where you really need to pay attention to the difference between business insurance vs personal insurance.
You can avoid being cut off from your personal homeowner’s insurance as long as you are transparent with your insurance agent about the purposes of your home. Having an open dialogue about your insurance needs as well as your company’s objectives can help you find the best business insurance vs personal insurance coverage at affordable rates.
Many business owners use their personal vehicle for business use. You may drive to see clients at their homes or offices, or you may transport items and equipment two and from job sites. Other companies use their vehicles to deliver goods or people to and from specific destinations. In some cases, you may require additional commercial auto insurance to properly cover you, your passengers, and the items you carry.
Most personal auto plans do not extend to any type of commercial or for-profit use of the vehicle. If a collision happens and you do not have commercial auto insurance, you are stuck paying for your damages as well as any other damages or injuries that occur.
Not all small business owners need commercial auto, however, and trying to figure out which category you fall in can be complicated. It is best to speak with an insurance agent to get all the information you need. You can explain the details of your business, as well as the way your vehicle fits into your daily operations. In turn, the agent can assist you with getting the best coverage taking into account business insurance vs personal insurance.
An area of business insurance that is often overlooked is the provision of health insurance to staff. Some insurance agencies offer employers discounts or deals on group insurance programs if they can get a set number of employees to participate. This is a great way to reduce your own health insurance costs, while offering the same great rates to your hardworking staff.