Business Insurance Needs

With the New Year right around the corner, now is the time to evaluate your business and its insurance needs for the coming year. As businesses grow and/or change their areas of focus, their liability exposure tends to change with it. For example, there may be insurance products that you needed five years ago that are no longer needed today, and vice versa.

Here are some areas to look at to help determine if you should be making any changes with your insurance in the near future:

Employees: If you have a small business that recently added employees for the first time or you have increased your work force significantly in the past couple of years, there are some insurance products you will want to consider:

• Workers Compensation: The laws for specific coverage requirements vary from state to state, but if you have any employees at all, you are required to carry Workers Compensation insurance. This product essentially provides no-fault coverage for your employees if they sustain a qualified work-related injury or illness. In exchange for providing no-fault coverage, employees are not allowed to bring legal action against their employer for covered injuries or illnesses.

• Health Insurance: New provisions of the Affordable Care Act of 2010 continue to be implemented yearly. In 2015, the employer mandate is set to go into effect; this will require firms with 50 or more employees to provide health insurance for all full-time employees (those working 30 hours or more) or pay a fine to the federal government. Most companies will have until 2016 to be in full compliance, so 2015 is the year to make sure you are on top of these changes.

Machinery/Equipment: Take an inventory of all the machinery and equipment you have that is essential for the business to continue operations. Then make sure that your insurance policies are up to date and fully covering all your business property for damage, loss and theft.

Vehicles: If your company has any vehicles being used for regular business operations, they should be covered by a commercial policy. Commercial auto insurance is generally more comprehensive than a personal auto policy and is geared toward the unique needs of businesses. Commercial auto insurance is also required for certain businesses in many states.

Place of Business: If you own or lease a commercial space, it is important to have coverage against fire, theft and other losses. If you have recently moved from a home office to a commercial location or changed locations in the past couple years, this is definitely one area that needs to be reviewed.

Speak with a Specialist: Business insurance products are not all created equal, nor are insurance agents. To find the best policy to fit your specific needs, it is best to speak with an insurance broker that works with several top insurers in your state. This allows them to shop around for you and put together the ideal package at the most affordable price.