Liability insurance, which covers the cost of compensation claims following fault or negligence brought against you or your business by clients, customers, shareholders, investors, or members of the public. This type of coverage is also important if you use your personal car for business. If you get into an accident while performing business duties, your personal auto insurance policy may reject the claim.
Your insurance company will cover defense costs including legal fees, the amount of a settlement/judgment (up to what’s set in the policy), and administrative costs . You give advice to a tax return client, recommending a different way to handle equipment depreciation to reduce taxes. A small business that owns or uses vehicles is frequently required by law to have at least the state-mandated minimum level of commercial auto insurance, also called business auto insurance. To qualify for small business health insurance, a business needs to have at least one full-time equivalent, common law employee who is not the owner, the owner’s spouse, or an independent contractor. to know more visit here ekinsurance.com
Additionally, all employers covered by the Fair Labor Standards Act must officially notify employees in writing about the new health insurance Marketplace. Whether a business has one or a hundred employees, sells products or offers services, operates from a business location or a residence, there are many types of insurance available to manage the risks of a small business. Be sure to consult a licensed professional agent who can best match you with the coverages you need for your business. Regardless of your industry, you need commercial general liability for small businesses.
Hiscox wins the top spot for independent contractors because they have products designed and priced specifically for independent contractors and freelancers. We recommend the best products through an independent review process, and advertisers do not influence our picks. Eric is a duly licensed Independent Insurance Broker licensed in Life, Health, Property, and Casualty insurance. He has worked more than 13 years in both public and private accounting jobs and more than four years licensed as an insurance producer. His background in tax accounting has served as a solid base supporting his current book of business.
An insurance agent will be able to help you select the most appropriate policies for your business. This individual’s input may lead to a reduction in your insurance costs and, most importantly, help determine the right amount of insurance to suit your needs. If you or your employees have an unsatisfactory driving record, it is likely to lead to a higher premium on your business vehicle insurances. Also, wherever possible, limit claims that could increase your premiums and consider paying for minor damages out of pocket. A company that has repeated claims against it could find itself paying more in insurance premiums over time. It may be advisable to absorb small losses rather than have constantly increasing costs for insurance.
Small business owners should keep in mind that hacking is not the only way that their company’s data can be compromised. According to a survey of small to medium-sized businesses in a Ponemon Institute Research Report, negligent employees or contractors and third party mistakes were the most common causes of data breaches in 2016. Each state also excludes certain workers from workers’ compensation coverage; while these exclusions vary from state to state, examples may include farm workers and seasonal or casual workers. A sole proprietorship with no employees besides the owner may be exempt from workers’ compensation. You can shop for small business health insurance plans through public or private health exchanges, or through a licensed insurance broker such as eHealth, which has the largest online marketplace for health insurance plans. Jeff Kear, owner of event-management software Planning Pod, said that business owners who work from home should consider separate home-based business insurance.
General liability insurance helps protect your business if someone claims bodily injury, property damage, or libel or slander due to your company. In the slip-and-fall scenario above, general liability insurance could cover the fees for attorneys and settlements. Commercial auto insurancehelps cover property damage and bodily injury claims if you or an employee gets into an accident while driving a company-owned vehicle for business. So, if your employee swerves off the road while making a delivery and hits a mailbox, this insurance can help pay for the damages. That’s because the types of business insurance coverage that you need for your small business depends on what your company does and the state you’re in. In fact, state laws require some small business insurancepolicies and it’s up to you to make sure you have the right coverage.