21 Protect Your Business Secrets

The Top 21 Your Business Insurance Questions Every Business Manager Needs To Ask

21 Business Insurance FAQ-2
  • Don't let your business insurance questions go unanswered
  • What is business insurance and why do I need it
  • What are the different types of business insurance policies available to me

Why do you need business insurance?

Business insurance is important for entrepreneurs because it can protect against the risk of employees losing work or even personal injury. There are many types of business insurance available, but some basic coverage should include property insurance, public liability insurance, and workers compensation.

It's crucial to get the right coverage for your needs and goals before opening a business or going self-employed. Business insurance can take many forms, with multiple levels of protection depending on the level of risk you want to be legally protected from.


Do I need business insurance for an online business?

It's worth noting that you should make sure your business has the appropriate coverage in place to protect both you and your company. Business Interruption Insurance covers lost income due to temporary closure of operation, natural disasters like floods or earthquakes, or faulty equipment. For example, if equipment fails during a busy holiday season and blocks production for a few weeks until it can be repaired or replaced, would you have enough money saved up to pay the bills? How long could you go without the income from sales? This is what needs to be considered when pondering whether or not an insurance policy is needed.

Another important consideration is protecting yourself as the owner of a business. General Liability Insurance protects against lawsuits because of bodily injury on premises caused by your business, or bodily injury that occurs on your customers' premises because of a product sold by your business. You may also want to consider protecting yourself against catastrophic losses such as damage to the property and equipment you own.


Does my business need professional indemnity insurance?

Typically business insurance policies are designed to protect three main areas. Firstly, public liability (i.e. if somebody gets injured on the premises due to inexperienced staff or faulty equipment), secondly products liability (i.e. if someone injures themselves by ingesting stale food from your fridge), and thirdly legal action over a breach of contract, typically in relation to employment contracts where you're found not have acted in good faith when hiring or dismissing people etc., or where you breach a duty of care towards your customers for example through negligence - both these last two categories relate to matters of civil law and not criminal law).

DISCLAIMER: I am not a solicitor, therefore I cannot provide anything but general information about this topic.


Does my business need workers comp insurance?

You should absolutely have workers comp insurance.

Injured workers need to be able to return to work and receive a fair wage in order to support their families, which is why employers with employees must provide them this crucial requisite from the start of an employment relationship. This applies even if your state has no-fault laws that cover job-related injuries – it can't hurt anything for you to provide some extra cushioning for every employee's protection! Workers comp coverage also includes certain protections after an injury or occupational illness by making sure the injured worker doesn't end up completely under the grips of unforeseen financial ruin. Be generous with your employees and give them what they need so that they can stay happy without neglecting yourself and your company needs.


How can insurance help in business?

Most business owners are well-versed in the many benefits of insurance, but it's important to know what type would benefit you. 

The following is a list of coverages and their average cost for an illustration purposes. Prices are subject to change, depending on a number of factors such as industry, location and company size. 

It's never advisable to purchase any coverage before researching options in your state or with prospective insurance providers. Coverage rates may vary by provider within the state - talk with your agent or broker about premiums for specific types and amounts of coverages before buying anything. The business owner should also investigate if they're eligible for any tax deductions- when appropriate - including losses incurred in a federally declared disaster area or a major disaster.


How do business insurance claims work?

Once you file a claim, the claims process begins with an investigation. Your insurance company's adjuster will use this time to assess how much money is necessary for repairs and replacement of property. This is where the need for an inspection comes in handy- they'll want to carefully review all damages taken at both your work site and offsite location(s).

If there is any instances of intentional damage on the premises of occupancy, it is imperative that you notify police as soon as possible. In these cases, proper documentation from law enforcement can help your case immensely if or when you find yourself in a disagreement with the perpetrator about what caused their actions. Without supporting information from a police report aligning with your statements, it will be easy for the perpetrator to file a counterclaim.

After your insurance company has made their investigation, you will get a final report from them with an offer on how much money they are willing to pay out for damages. At this point, if there is anything about the offer that you disagree with (i.e., why it's too low), you will file a claim with your insurance company. This is where the file a claim statement comes in handy!


How does business interruption insurance work?

Business interruption insurance is a form of commercial property and casualty insurance that covers lost income and ongoing business costs that result from unforeseen events like storms or equipment failure. The duration of coverage usually includes losses due to the following "insured events":

1) loss of customers, 

2) loss of market share, 

3) increased cost for ending business operations at old location or starting up at new location, 

4) other expenses when you can't carry out your normal day-to-day operations because you must stop or limit operation pending repairs etc., and finally 

5) any showing losses when these insured events happen. All this is available with terms such as loss after policy expiration. What about the return on investment?


How much business insurance do you need?

Quite a lot, actually. First, there is the cost of doing business that needs to be considered. Then there are the four major kinds of coverage: Property Protection — protects against damage to real and personal property such as accidents or fire; Liability — covers losses caused by injury or death of others, owned property, and professional mistakes; General Errors & Omissions (E&O) Coverage - cover legal costs arising from errors made while providing products and services; Employee Dishonesty - protects against losses due to theft by employees.


How to compare business insurance policies?

You have two options when it comes to business insurance policies. There are "liability-only" policies that cover lawsuits and other legal action where you're found at fault, and there are full-coverage policies that include a variety of insurances such as law suits, vehicles, property damages or unexpected actions during the work day. Policies also come with various inclusions and exclusions like protection for natural disasters and third-party liability. The first step is to identify what it is you're looking for in coverage before moving forward. The second step would be comparing policy cards by looking into the product descriptions, inclusions/exclusions list; getting on a phone call (or video chat) with an agent from the company and ask a lot of questions.

The next step is to look at insurance companies. There are insurance brokers who work on your behalf, and insurance agents who represent the insurance company in question. Also compare premiums as insurance companies with a reputation for being the best insurance company of the year will also be the most expensive insurance company.


How to register for insurance in business?

The first thing to take into account when choosing an insurance policy for a business is what type of law it's registered under. The two most common are the proprietary limited company and the incorporated association. Proprietary limits can be either a sole trader or partnership, while incorporated associations may be charitable bodies or self-regulating professions like the ACCC.

Depending on your area of business, there are different types of insurance that you may want to consider too, including general liability cover (protecting against third-party claims), public liability cover (which is usually mandatory if you'll be operating at events), engineering liability cover and product recall indemnity insurance. 


Is business insurance compulsory?

Yes, business insurance is compulsory in most parts of the world. It covers your business's property, its employees and their injuries, any deals you have with clients where you need to purchase liability protection against potential accidents/problems caused by your work among other things.

If a person in charge of a company neglects to get the correct insurance for their people or their property it could be disastrous! They might for instance find they are unable to provide homes/money + medical coverage + transport back home for some employees if they're sent home sick on medical grounds. If there was an accident that caused injury (say from an unpaid employee) who was injured on job-time then without proper compensation money they may find themselves bankrupt before too long. Bad business insurance can be a real nightmare for business owners so make sure you find out how it covers your people or property before you sign up for the wrong one!


What business needs public liability insurance?

Since claims for personal injury and property damages could arise from another company's product, service or activity, it is important that you have the right insurance coverage. Liability Coverage Protection may help protect your organization against this risk. These policies pay the costs to defend your company in a court case if one of your products injures someone or when damage occurs on a customer's property as a result of something you did. 

Insurance can also cover any settlement awarded by the court up to the limit specified in the policy. In some cases, liability insurance covers things such as information security breaches and privacy concerns at no additional cost over standard premiums. 


What does general business insurance cover?

For the small business owner, insurance coverage might happen. The three main types of business insurance are property damage, personal injury and general liability. Coverage is largely determined by occupation type and the perceived level of risk in a given profession. Property protection covers the insured's physical assets from such things as fire, theft or vandalism at their establishment(s) or on any third party property to which goods are delivered by them. General liability covers those losses that may arise out of an accident for which they would be legally liable either through contract or other legal obligation (e.g., fiduciary responsibility). Personal injury usually applies to persons whose bodily integrity has been damaged physically by an act intended or desired by the insured to injure him/her.


What does liability insurance mean in business?

Professional liability insurance is typically required by any corporate entity that aims to do business with, or in a facility, place, or location where there are people other than owners and staff. It's simply an assurance of safety and indemnity against lawsuits caused by errors made during the course of work. A corporation can be sued when someone is injured at their workplace and the injury was due to an error made by an employee on duty.

Employers liability insurance covers the company in case they're found liable for injuries to employees who've been hurt as a result of some kind of hazard at work, such as falling objects or unsafe machinery or tools. Workers' compensation coverage assists state governments in dealing with their responsibility for treatment services for injured workers under their jurisdiction.

The professional liability insurance is best used to protect the company against damages caused by professional errors such as medical negligence, professional malpractice and professional asset damage. In most cases, professional liability policies apply to professionals in every field of work that are required to have a license in order to operate their business legally. Typical professionals include doctors, attorneys, professional engineers and architects.


What is business insurance?

Business insurance is the coverage for all of your business's risks, so it includes property insurance, liability insurance, workers' compensation and automotive. It covers damage to your equipment and protection in cases where you owe money as a result of somebody else's personal injury or property damage. Most importantly-it can protect against an uninsured or underinsured loss-something that could come out of nowhere just when you need it most. So make sure you have the right amount of business liability insurance with enough umbrella coverage to provide additional safeguards for your expenses in a recovery event. 


What insurance do I need to run a small business?

Business insurance is a type of commercial insurance which protects both the business and its owners (and employees), as well as its customers. Businesses provide goods or services, often offer products for sale, respond to customer queries and complaints, and generally try to create a good experience for any valuable clients. As these interactions increase in frequency over time, it becomes more important that they remain protected from damage.

Without insurance protection, anything could happen - some seemingly innocuous malady such as a cough at breakfast might lead to hospitalization by lunchtime - so losing coverage can put nothing less than the entire enterprise at risk. Buying an individual policy should be considered if you want protection for those who work for you or have other dealings with you. Purchasing small business insurance instead is likely to offer greater protection for the same price.


What is business public liability insurance?

Public liability is a type of insurance that protects companies against legal responsibility for accidents and injuries caused by its employees or agents in the course of their work. A public liability claim occurs when someone suffers damage as a result of an accident involving an employee’s equipment or some other risk on their job. Professional indemnity insurance, also known as "errors and omissions" coverage, provides protection to business owners who are under threat of being sued because they have failed to do something as promised on which somebody has relied. By having errors and omissions coverage, business owners may feel more confident about taking risks and following creative urges; this will allow them to pursue opportunities with less fear. To protect your company from financial loss due to such public liability claims and professional indemnity insurance, public liability insurance is designed to help you cover the costs of any public liability claim.


What is business umbrella liability insurance?

Umbrella insurance is also referred to as "excess liability insurance" and can be used in the event of a lawsuit. For example, if you're found liable for $5 million worth of damages, your umbrella policy will cover that loss up to the specified coverage limit under this policy.

Whether you can afford an umbrella insurance policy depends on how much money your business makes over time because commercial umbrella insurance costs vary depending on several risk factors such as industry type and company size. Some experts label insurers' willingness to issue more expensive policies like this one a "bet" that big pay-outs won't happen often or in any high-value cases within their pool of insureds. So higher premiums may be worth it if there's protection against a big claim.


What to know about business insurance?

Business insurance protects your business and its workers from disaster when it matters most. Protecting your employees once inside the workplace is mandatory, but protecting them elsewhere too isn't always considered as important. Most property insurance policies only cover a company's private property while they are carrying out their work and on commercial premises only, not work-related trips away from the office - something that is all too common in today's mobile workforce who need to sometimes travel during the working day for meetings or training sessions. By choosing a tailored policy with specialist cover for travelling workers, you can be sure that staff won't lose out should they need personal protection overseas or at home - meaning peace of mind you couldn't have had without adding those valuable protections onto your existing business insurance.

In addition to protecting your workers, specialist business insurance policies can also be useful when protecting your personal assets such as a car or home from the effects of commercial activities. For example, if you use your own vehicle to collect money on behalf of your small business then it is likely that you'll have an excess to pay in the event that your vehicle is damaged on the way to making a collection. However, by protecting your car with business vehicle insurance , you're protecting more than just your own investment - protecting those that are travelling with you too.

In addition to securing cover for yourself and those travelling in your company's vehicles, protecting your home against damage caused by running a small business from the property is also essential. While protecting your home with a standard policy can be difficult, having business contents insurance will protect any stock and tools that are kept at home in order to do your job properly. It's important that you make sure you keep these valuable items covered, but protecting them isn't as easy as protecting your private assets such as jewellery or your car.


What does general liability business insurance cover?

General liability insurance can cover the following exposures: bodily injury, property damage, medical costs and personal injury coverage for your employees or others involved with your business, legal expenses, such as defending lawsuits over defective products or someone being injured at work. Plus you may find that general liability insurance provides other features to help protect your company from potential problems such as directors & officers coverage which helps protect the company if one of those high-level people is sued or found liable in some way. 


What insurance do I need for my business?

A good insurance policy can provide you and your business with the protection it needs in case anything goes wrong. Liability is typically the most important type of coverage for a business owner--as you're providing a service to other people, they might try to hold you responsible if something goes wrong. Workers compensation is important if someone gets hurt on your premises or requires medical attention--you need this so that their workers' comp benefits will be met and that person will not come back and sue you down the road because of their inability to work. There are also contingent insurance policies which can protect against financial losses from any sudden event like fire, flood or theft due to natural disaster that "knocks out" your primary location (e.g., earthquake destroys your building).



As a business manager, it's important to keep your eyes on the prize and not let anything get in the way of growth. There are many different types of insurance available that can help protect you from potential losses like lawsuits or natural disasters. Take some time today to review what type of coverage is best for your company so that you're prepared for any situation.

21 Business Insurance FAQ