Business insurance is an important and necessary expense in creating and sustaining a successful business. There are legally required and optional types of insurance. Different types of policies help protect your investment against operational loss that may be caused by a lawsuit, natural disaster, or other event.
Legal Insurance Requirements
There are state and federal insurance requirements for insurance policies that can be purchased from a licensed Tulsa business insurance company. Businesses with a certain number of employees must pay for workers’ compensation insurance, unemployment insurance, and, in some states, disability insurance. Not having these types of insurance when required may subject your company to legal action including fines and lawsuits.
Optional Types
Depending on the type of work you do, business insurance should be tailored to meet your specific needs. Most policies will include general liability to protect against accidents or injuries to employees or patrons. Companies that produce and distribute products may need product liability business insurance to protect against defective products that have the potential to cause harm. Commercial property insurance protects against damage caused by things such as vandalism, fire, and floods. Keep in mind that homeowner’s insurance policies do not typically cover home businesses. Although insurance is sometimes optional, some merchants will not work with companies who do not have appropriate coverage.
How to Buy
Before buying business insurance, it is important to assess your company’s risks and needs. A reputable, licensed agent can assist with determining what type of protection your company needs. Shop around. There are agents who specialize in business insurance in Tulsa, OK and can provide a level of service specific to business owners. Be aware and open about what risks you see. For example, a vendor producing electronics will likely need less product liability coverage than one that produces stuffed toys. Depending on your capital and financial strength, negotiate a deductible that makes sense for your company.
