What determines the cost of business insurance?
A variety of factors help insurance companies determine policy rates for businesses. One factor that plays a major role in the price companies pay for business insurance has to do with the type of business and the risk involved. Companies using large machines and hazardous chemicals will pay more for insurance than businesses with low risk.
The amount and type of insurance that businesses need also affects the cost. The cost of business insurance increases as it covers more, so depending on the number of employees and size of business, insurance rates will vary. Depending on your business’ need, insurance agents at The Accel Group will help find the correct type of coverage at the best rate possible.
Another factor to consider includes location of the business, high-crime locality, or need for severe weather coverage. Claims history can also affect the rate of premiums for businesses. Just like other types of insurance, filing claims can place insurance holders in a high-risk category that results in higher premiums.
Do businesses need liability insurance?
Businesses are not required by law to hold liability insurance. However, annual premiums for general liability insurance are typically low, making it a smart and important investment. Businesses without liability insurance could acquire thousands to millions of dollars in legal fees and settlements upon an accident.
There are a variety of liability insurance options that businesses can choose to purchase to protect their business.
General liability covers and protects businesses from any legal issues that could arise following accidents, injuries, and claims of negligence.
Product Liability Insurance protects companies from financial loss because of a defect. Product liability insurance is needed for companies that manufacture, wholesale, retail, or distribute products. Companies are also able to purchase professional liability insurance and disability insurance if their business needs require it.
Am I required by law to have insurance?
If your business employs individuals, state law requires certain insurance coverage. Businesses with employees are required to purchase workers compensation coverage as well as unemployment insurance tax under certain conditions.
What does general liability insurance cover?
General liability insurance, also known as commercial general business insurance protects assets and pays for damages in situations that occur on the business’ property or if an employee of the business causes damage to another property. General liability insurance, for example will cover medical expenses if a customer is injured on your business’ property. Liability insurance also covers the cost of legal defense and any settlement or award if a business is sued.
This type of insurance can also cover claims of false/misleading advertising including libel, slander, and copyright infringement.
How much coverage do I need?
See above (What determines the cost of business insurance?). For a specific answer on the amount of insurance your business in Iowa needs, contact The Accel Group today. A professional agent will help you determine the exact type and amount of coverage you need.
Do I need workers compensation coverage?
Workers’ compensation insurance covers medical/rehabilitation costs and lost wages of employees injured on the job. Workers’ compensation insurance also covers employer liability in case of a lawsuit against the business as a result of the accident or injury. In Iowa, and all 50 states, businesses with employees are required by law to purchase workers compensation coverage.
What is an umbrella policy
An umbrella policy provides excess in liability over existing policies and also fills gaps in underlying coverage. Talk to your Accel Group agent about an umbrella policy and if is right for you.
For all questions concerning your business’ insurance needs, contact The Accel Group today. A professional agent can help you understand your coverage needs and provide you with the best coverage possible.