When you own a small business, achieving long-term success depends on having an effective risk-management plan. Natural disasters, injuries, and criminal acts are a few of the unforeseen events that may impact operations and finances. To ensure you’re able to recover unexpected losses, you should have business insurance. As you explore your options, you may need clarity about coverage. Here are answers to some common questions small business owners have when buying insurance policies.

What to Know Before Purchasing Business Insurance

What types of coverage should I consider?

Although every small business has unique insurance needs, certain types of coverage benefit all organizations. General liability insurance protects you from third-party injury claims, for example, and property insurance pays for damages to property and equipment.

Business interruption insurance is another type of insurance that your business may need. It provides reimbursement for lost revenue should a covered disaster force you to shut down operations for a time. 

Is business insurance required by law?

Legal requirements for business insurance vary from state to state. In Missouri, most employers with five or more employees must carry workers compensation. Those in the construction industry need it after hiring just one employee. In addition, any vehicles used to conduct business should be protected with a commercial auto insurance policy. 

What factors affect my rates?

Insurers consider a few factors when calculating policy premiums. Your rates will be based not only on how much coverage you purchase but also on the industry you’re in, company size, location, and claims history. Bundling policies and securing your premises with cameras and alarms are two ways to keep costs down. 

How do I shop for a policy?

A trusted insurance professional will help you compare different products. They’ll assess your company’s needs and determine which coverage solutions offer you required levels of protection. An agent can also advise you of discount eligibility.  

If you’re looking for quality business insurance at an affordable rate, our team of knowledgeable agents at Farmers Insurance Group will help you find it. For more than 15 years, we’ve been dedicated to meeting the unique coverage needs of clients in and around Mountain Grove, MO. We offer fully customized policies to provide safeguards from the specific risks your company faces. Call us at (417) 926-7900 to set up an appointment, or visit our Facebook page to learn more about our agency,