Small business insurance: Learn the basics

There’s a lot more to business insurance than getting the lowest business insurance quotes. It means understanding your business’s unique needs and the potential hazards that can threaten its success. The Insurance Information Institute (III) offers a good primer on Small Business Insurance Basics, which outlines and explains the major coverages: Property, Liability, Business Auto and Workers’ Compensation. The article also offers a brief explanation of other common business coverages, including coverages for various types of liability.

Many small businesses opt for BOP coverage or Business Owners Policy. This packages several common business coverages in one package, but note that III says:

“BOPs do NOT cover professional liability, auto insurance, worker’s compensation or health and disability insurance. You’ll need separate insurance policies to cover professional services, vehicles and your employees.”

Explore more business insurance basics

Business Insurance 101: The Basics of BOP

This short video clip from the Insurance Information Institute (III) offers a brief rundown on the basics of Business Owner Policy, or BOP, which covers your business for property and liability and helps keep your assets safe. For more detailed info, see What Does a Business Owners Policy (BOP) Cover?, also from III.

Thinking of starting a business? Here’s a Small Business Insurance Tool Kit

As you plan for a new business, are you confident that you know enough about your insurance needs? Test your business insurance IQ with a quiz prepared by the National Association of Insurance Commissioners (NAIC) to see how you fare.
If you’re currently in the planning stages for launching a new or home-based business, an important aspect of the business plan is factoring in insurance costs. An independent insurance agent should be part of your planning and advisory team. But meanwhile as you do your planning, there are a lot of good online resources where you can learn some of the business insurance basics.
NAIC offers Insure U for Small Business. The site is a great primer on business insurance, offering helpful information, tips and considerations about for owners of small companies and home-based businesses.
Here are links to the major groupings that the site covers.

The Insurance Information Institute is also an authoritative and non-biased source of information on general business insurance as well as a helpful glossary of insurance terms. Here are a few other essential tools they offer for a small business: