Business InsuranceBusiness insurance, like all insurance, can seem overwhelming and often costly. You don’t want to pay for too much coverage but you certainly don’t want to end up underinsured either. So whether you are starting a new business or just re-evaluating your current plan, you’ll need to understand your risk and the policies that are available to cover it.

Carefully consider your business services, your employees and clients. There are many variables to consider such as the type of business you own, the state in which you live, if you have employees or not and the structure of your business – a corporation or LLC. Many business owners believe that the protection provided by their business structure sometimes eliminates the need for business insurance.

However, while company structure can protect your personal assets, it does not protect the business itself. Your insurance needs will obviously be dictated, in part, by North Carolina state regulations which will determine basic insurance requirements; among the commonly required policies are NC business insurance and North Carolina workers’ compensation. However, it’s important to keep in mind that these insurance components may not be enough. North Carolina business insurance packages can include a combination of any of the following coverage options:

  • Business Owners Policies (BOP)
  • Worker’s Compensation
  • General Liability Insurance
  • Errors & Omissions
  • Commercial Auto
  • Commercial Property
  • Group Benefits
  • Professional Liability

Just as important as identifying the coverage you need is budgeting for the expense. Be prepared to spend between 20 to 30 percent of total yearly revenue as a general budgetary figure for comprehensive coverage, including health and life insurance. If you are just starting a new small business, calculate your insurance budget based on estimated annual revenues. When evaluating your budget, keep in mind that most small business insurance premiums are tax deductible.

Protecting your business investment with insurance minimizes the risks associated with unexpected events, liabilities, and losses. Your business insurance and risk management budget requires constant review. Contact your local, independent insurance agent for more information regarding NC business insurance, workers compensation and more.