Business Insurance… a little coverage goes a long way

written by Neil McKinnon | StateFarm Agent

Understanding business insurance is essential whether you are just beginning your business or have been in business for 20 years. Although some insurance is state mandated, such as Worker's Compensation, disability & health, artisan and service contractors, and business life insurance. These types of insurance coverages can protect your business and personal assets for pennies on the dollar. Business insurance doesn't have a "one size fits all" approach; instead, business insurance is based on your business type, the assets you want to protect, and your financial goals.

There are several things to consider associated with the type of coverage that a small business may need that may be overlooked by the small business owner, such as disability & health, artisan and service contractors, and business life insurance.

Disability & Health

This type of insurance helps when you have been ill or have an injury that limits your ability to work. This type of insurance pays you a portion of your regular salary while recovering from your injury. If you endure a disability, this type of insurance can reimburse you when you cannot return to your profession.

If you have a small number of employees, you should direct your workforce to the insurance MarketPlace to find health insurance policies appropriate for their family's needs. These policies are based on the number of family members and any current and existing health concerns.

This type of policy is a great way to ensure that your workforce is healthy and able to work knowing that their family has health coverage. However, if you have more employees, it may be time to consider a company health insurance policy to cover them and their families.

Artisan and Service Contractors

Artisans such as hairstylists, painters, chefs, plumbers, and electricians need to protect the tools that they use for their craft. Their tools of the trade should be insured for these unique jobs. Insuring tools such as cutting shears, pots, pans, stoves, spray machines for paint, and all the tools of plumbers and electricians. There is also insurance protection for liability losses and brick and mortar.

Business Life Insurance

The future of your business depends on being prepared for the unexpected. For example, could your business continue if you passed away? Do you have the financial resources to replace a key employee if they pass away? Would you like to reward and retain talented employees with incentives? Business Life insurance can help address all of these. This type of coverage can protect the future of your business for you and your employees; protecting your business with a policy that looks towards your future is critical.

Covering you and your employees also helps protect the life of your business. When you're busy running a business, there's not always time to stop and plan for the future.

But think of how good it would feel to know that you, your business, and your employees are prepared for what's ahead. The future of your business depends on being prepared for the unexpected. For example, could your business continue if you passed away? Do you have the financial resources to replace a key employee if they pass away? Would you like to reward and retain talented employees with incentives? Business Life insurance can help address all of these.

I know how much time, energy, and money go into starting a business. I remember writing my first policy and my last customer. Don't entrust your business to a form you completed on a website. Instead, sit down with a professional who can listen to your needs, provide a qualified assessment, and offer adequate protection. Another small business owner is the most reliable resource for any small business owner. State Farm® agents are that resource. With the hands-on knowledge they've gained from running their own small business, they're here to assist you with the coverage and financial services that better fit your unique needs, now and in the future.

You don’t make progress by standing on the sidelines, whimpering, and complaining. You make progress by implementing ideas.

–Shirley Chisholm