- February 23, 2011
- Posted by: Richard S. McIntosh
- Category: Business Insurance
Why you need Minnesota business insurance?
You have worked hard putting your business together and it is a huge investment. Unfortunately, disaster can strike no matter how conscientious of a Minnesota business owner you are. A fire could wipe out all your profits and even destroy your Minnesota business. The key to making sure all your time, efforts and money you have invested in a business doesn’t disappear when a disaster strikes is to protect it with the appropriate Minnesota business insurance.
Business insurance normally covers the following:
Insurance companies selling Minnesota business insurance generally offer two ways to but it. Either the coverage’s are sold separately (like a cafiteria line) or purchased as a package. The package purchased by small and mid-sized MN businesses is the business owners policy (BOP). These business owner package policies are created for businesses that generally face the same kind of risk. Many small Minnesota businesses qualify for this type of policy. If your business does, it is generally better and lower cost. Coffee shops, furniture stores, restaurants, contractors, accounting offices are just a few of the examples of the types of business that may quality.
Business Owners Policy’s (BOP) include:
- Property insurance for buildings and contents owned by the company — there are two different forms, standard and special, which provides more comprehensive coverage.
- Business interruption insurance, which covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business. It can also include the extra expense of operating out of a temporary Minnesota location.
- Liability protection, which covers your company’s legal responsibility for the harm it may cause to others. This harm is a result of things that you and your employees do or fail to do in your business operations that may cause bodily injury or property damage due to defective products, faulty installations and errors in services provided.
- BOP’s do NOT cover professional liability, auto insurance, worker’s compensation or health and disability insurance. You’ll need separate insurance policies to cover professional services, vehicles and your employees.
How to insure your home based business
If you’re running a business from your home, you may not have enough insurance to protect your business equipment. A typical Minnesota homeowners policy provides only $2,500 coverage for business equipment on premises and as little as 10% of that off premises, which is usually not enough to cover all of your business personal property. You may also need coverage for liability and lost income. Insurance companies differ considerably in the types of business operations they will cover under the various options they offer. Regardless of the type of policy you choose, if you’re a professional working out of your home, you probably need professional liability insurance. Some types of in-home businesses, such as those that make or sell food products (salsa, jelly…) or sell home-made personal care products, may have to buy special policies.
Our Minnesota insurance agency believes that buying business insurance online can be a huge mistake without the guidance of an experienced honest independent agent. We speak insurance and can guide you through the maze of coverage’s that you actually need, while avoiding the options and pitfalls. Request a Minnesota business insurance quote now.