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How can we determine what type of insurance to purchase for our business?

How can we determine what type of insurance to purchase for our business? Also, could you explain how to become bonded and why we would be recommended to do so?

Answer: We are not licensed insurance agents and do not provide insurance coverage recommendations or quotes to members; however, we can provide members with helpful business insurance information and resources. Also, fidelity bonds are common among businesses that have employees working in clients’ homes and other client premises; however, business owner theft and fraud are issues you will have to discuss with your insurance agent. A qualified business insurance agent can help you obtain both insurance and bond coverage.

As to business insurance, several factors influence liability (general, professional, etc.), property, vehicle, workers’ compensation, and other insurance and bond coverage types, amounts, and premiums, including the types of services, amount of company and/or owner assets, the amount of business sales, number of employees, customer contract requirements, and professional licensing requirements. Even if the business is conducted through a business entity (i.e., LLC, corporation, etc), basic insurance for a business typically includes general liability insurance coverage, property insurance for protection against fire, theft, and other losses, workers’ compensation insurance, business interruption insurance, key person insurance, bonds and other coverage.

Because business insurance needs vary greatly, we generally recommend business owners work with a qualified business insurance broker who can identify the recommended insurance coverage for their business, customize an insurance package for their business, and obtain competitive premium quotes. It is often important to work with an independent broker who can shop your insurance with several companies and not just one insurance company. Also, professional and industry associations and organizations and your State Department/Division of Insurance can be resources for insurance coverage.

You can find a local business insurance broker or agent through your Yellow Pages or an Internet search engine will generate resources like the following:

For discussion with your broker or agent, you can also review information on the various forms of business insurance at the following websites:

Published: August 1, 2013
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Rebecca Kincaid

Operating as a Chartered Life Underwriter, Rebecca specializes in life insurance for business and estate-planning purposes. Rebecca's background also includes regional management and sales positions with leading insurance firms such as Parker & Company and Old Mutual Financial Network. In addition to her consultative support, she also acts as the Director of Life Sales for Tarkenton Financial.