Top 7 Business Insurance FAQs


Many businesses may have the same Insurance FAQs as yours. Check out this list to solve your most common questions.


When many people start businesses, they have quite a bit on their mind. They need to think about where they will set up shop, how they will brand and advertise their business, how they will bring aboard employees, and about a hundred other things. If you are in the midst of starting a company, then you know how time consuming it can be. Unfortunately, many businesses do not always take the time to understand just how important it is to have the proper insurance coverage for their business. In this FAQ, we will discover:


  1. What does a business owner’s policy cover?
  2. What is professional liability insurance?
  3. Who needs a commercial auto insurance policy?
  4. Do you need interruption insurance?
  5. Should you get home business insurance?
  6. Does your company need worker’s compensation insurance?
  7. What does the term key man insurance mean?

What Types of Things Does a Business Owner’s Policy Cover?

Many times, insurance companies will sell insurance that they bill as a business owner’s policy. This will generally cover both property and liability risks. One of the benefits of this type of policy is the fact that it is simply easier since there is just a single policy to concern you. Of course, these companies also sell coverage separately if you prefer. They tend to work well for companies of any size, but it is always important to read the policies carefully so you know exactly what they do and do not cover. Often, it is possible to customize these policies so that they will cover exactly what you need. Naturally, the customization and addition of other coverage will add to the price.

Do You Really Need Professional Liability Insurance?

Liability coverage will protect a business from loss in the event of injuries, deaths, and damage to property caused by the operation of the business. It is important to have this type of insurance for any business owner. When it comes to professional liability insurance, it protects the professional who starts the business, such as a mechanic, from suits by their clients, and it is different from the normal liability coverage that a company needs. It is a type of specialty coverage specific to the protection of professionals.

Those who are considered professionals have training or technical knowledge in their specific field, and they are able to perform a number of specialized and highly skilled services. Courts can find professionals guilty if they find that the professional didn’t use the skill expected of them. These can break a person financially. This type of insurance will provide coverage for just those types of events.

Should You Have a Commercial Auto Insurance Policy?

What type of business do you have and how often do you use vehicles specifically for the purpose of running the business? This will determine whether you need to have this type of insurance or not. Those who have home businesses and who do not need to use a vehicle for business needs will not need to have a commercial auto policy. If you run any type of business that does not utilize company vehicles, then you will not need to have one of these policies either. It often depends on how you use the vehicles for your business as to whether you need this policy. Your insurance agent will be able to determine whether you need a policy and can explain it to you.

Is Interruption Insurance Needed for Your Business?

What would happen to your business if some type of disaster prevented you and your employees from going to work for a couple of weeks, or even just a couple of days? It could be disastrous. Fortunately, you can choose an interruption insurance policy that can help to mitigate your losses. This type of insurance is usually added on to another policy, such as property insurance. It can also be part of a package deal, and that can sometimes represent the greatest savings for you.

Take just a moment to think about how much money you could potentially lose if you had to shut down the business even for just a couple of days. It is easy to see how important this type of insurance could be for you.

Do You Have a Home Business? Do You Need to Insure It?

Most of the time, a homeowner’s insurance policy will only cover up to $2,500 in business equipment. This means that if you suffered a major loss and you had several large and expensive pieces of equipment at your home, you might not have the coverage you need through your regular policy. A couple of computers and other electronic items quickly exceed this amount. Having additional home business coverage is a good idea for covering equipment. However, it may also be necessary based on the type of business you run.

Do You Need Workers’ Compensation Insurance?

If you have people who are working for your company, then there is a good chance that you will need to have workers’ compensation insurance. In most states, if you have over a certain number of employees working for you, it is a requirement. This is true whether they are fulltime or part time workers.

What Is Key Man Insurance?

If one or two people in the business are essential to the success of that business, then you will need to have key man insurance. This type of policy will protect the business in the event that one of the key members of the business dies. It has some similarities to a life insurance policy. However, the main difference is that the benefits will go to the business rather than to the person’s family.

Those who are starting a business will likely have plenty of other questions when it comes to what type of insurance they need. It’s understandable, and we are here to help. Get in touch with us so we can provide you with the information you need.