Types Of Business Insurance
Picking the Right Business Insurance
To help you get started, we’ve put together all the information you need to make the best decision for your business, including:
- An overview of the different types of business insurance available,
- Explaining the insurance requirements in Ohio
- Insights into the cost of coverage.
- Why Ohio business insurance is essential for protecting a business’s assets, income, and financial stability,
- Information on the industries we specialize in covering.
If you’re a business owner in Ohio looking for comprehensive and tailored insurance coverage, Ellerhorst Insurance Agency is here to help you.
Common Types of Business Insurance
List Of Common Types of Business Insurance
General liability insurance, also known as commercial general liability insurance, is one of the most important types of business insurance available. It provides protection against third-party claims of bodily injury or property damage that may occur on a business’s property or as a result of its operations. This type of coverage is essential for any business that has customers, clients, or visitors on its premises, as it can help protect the company from costly lawsuits and other financial losses.
In the circumstance that a customer slips and falls in your store, or if one of your products causes injury or damage to a third party, general liability insurance can help cover the cost of legal fees and any settlements or judgments that may result from the incident. It can also help cover the cost of medical expenses for anyone injured on your property. Without general liability insurance, a single accident could be financially devastating for a small business.
Business Income Insurance
Business income insurance, also known as business interruption insurance, is a type of coverage that helps protect a business against lost income and expenses resulting from a temporary suspension of operations due to a covered loss. This type of insurance is particularly important for businesses that rely heavily on their physical location and equipment, such as retail stores, restaurants, and warehouses. In the event of a covered loss such as a fire, natural disaster, or power outage, business income insurance can help cover the cost of lost income, as well as necessary expenses incurred to continue operations such as rent, utilities, and payroll.
In the event that a fire destroys a restaurant, business income insurance would help cover the loss of income from the time the restaurant is closed for repairs, as well as necessary expenses like rent for a temporary location. Without business income insurance, a business could be faced with severe financial losses due to unexpected events, potentially leading to bankruptcy.
Home-Based Business Insurance
Home-based business insurance is a type of coverage specifically designed to protect individuals who run a business out of their residence. It is an extension of a standard homeowners insurance policy, and it provides protection for a variety of risks specific to home-based businesses.
Home-based business insurance can include coverage for things like business interruption, equipment breakdown, and liability. For example, if a client gets injured in your home office or if your business equipment is damaged, this type of insurance can help cover the costs of legal fees, medical expenses, or equipment replacement. It also provides coverage for lost income if the business is interrupted by a covered loss such as a fire, theft or natural disaster. Additionally, it can also extend protection for products and completed operations.
Without this kind of coverage, homeowners could be held personally liable for any losses or accidents that occur in connection with their business, putting their personal assets at risk. This insurance can provide peace of mind, knowing that the home-based business and its owners are protected in case of unexpected events.
Data Breach Insurance
Data breach insurance is a type of coverage specifically designed to protect businesses from the financial losses that can result from a data breach, such as a hack or cyber attack. This type of insurance can help cover the costs associated with a data breach, including costs for legal and consulting fees, credit monitoring services for affected customers, and fines and penalties.
A data breach can be a significant event for a business, as it can result in the loss of sensitive customer information, damage to a company’s reputation, and potential legal and financial repercussions. Data breach insurance can help mitigate these risks by providing financial protection in the event of a data breach.
In the event a business suffers a data breach, data breach insurance can help pay for the costs of notifying affected individuals, providing credit monitoring services, and covering any legal fees that may arise. It also can help with the cost of hiring a forensic expert to investigate the incident, and any fees to public relations firms to repair the company’s reputation.
Data breach insurance is an important consideration for any business that handles sensitive information, such as personal data or financial information, as it can help mitigate the financial impact of a data breach and help protect the business from potential legal repercussions.
Commercial Auto Insurance
Commercial auto insurance is a type of coverage specifically designed to protect businesses that use vehicles for business purposes. This can include anything from delivery trucks, to cars used by employees for business travel. It covers liability, collision, and comprehensive damages and injuries caused by a business-owned vehicle, and it can also include coverage for medical payments, rental reimbursement, and even roadside assistance.
Accidents happen. If an employee driving a company-owned vehicle gets into an accident, commercial auto insurance can help cover the costs of any damage to the vehicle, as well as any medical expenses for injured parties. Without commercial auto insurance, a business could be held liable for these costs and it could be financially devastating.
Commercial auto insurance is an important consideration for any business that uses vehicles in its operations, as it can help protect against financial losses resulting from accidents or other incidents involving business-owned vehicles.
Commercial umbrella insurance is a type of liability coverage that provides an extra layer of protection for businesses. It kicks in when the limits of a business’s other liability insurance policies, such as general liability, workers compensation or commercial auto insurance, workers compensation have been exhausted. This coverage can help protect a business from large, unexpected losses that could result in financial ruin.
For example, if a business is sued and the damages awarded exceed the limits of the company’s general liability insurance, commercial umbrella insurance can help cover the additional costs. This insurance can also provide protection against claims that are not covered by primary policies, such as libel, slander, false arrest, and wrongful eviction.
Commercial umbrella insurance is an important consideration for any business, as it can provide an extra layer of protection against potential financial losses from lawsuits or other legal actions. It can help ensure that the business has the necessary funds to cover costs even in the case of unexpected high-value claims.
Does Ohio require business insurance?
In Ohio, businesses are required to have workers’ compensation insurance for their employees, as it provides benefits to employees who are injured on the job. However, other types of business insurance, such as general liability, property insurance, and professional liability insurance, are not legally mandated.
It is important to note that while these types of coverage may not be legally required, it is highly recommended for business owners to have them in order to protect their assets and financial stability in case of unexpected events. A single accident or lawsuit could be financially devastating for a small business without the proper insurance coverage.
Additionally, certain industries or business operations may have specific insurance requirements, such as commercial auto insurance for companies that use vehicles for business purposes, or food liability insurance for restaurants. It’s always recommended to check with your state or local government to make sure that your business is compliant with any applicable regulations.
At Ellerhorst Insurance Agency, we can help you understand the insurance requirements specific to your business and industry, and help you find the coverage that’s right for you.
How much is business insurance in Ohio?
The cost of business insurance in Ohio can vary widely depending on a number of factors such as the size and type of business, the level of coverage needed, and the location of the business. On average, small businesses can expect to pay anywhere from $500 to $3,000 per year for a basic package of coverage. However, larger businesses or those in high-risk industries may pay significantly more.
The cost of workers’ compensation insurance in Ohio is determined by the Ohio Bureau of Workers’ Compensation (OBWC) and is based on a business’s payroll and industry classification. The OBWC provides a premium rate calculator on their website to help employers estimate the cost of their workers’ compensation insurance.
It’s important to note that the cost of insurance can also be affected by the business’s claims history, safety record, and the level of coverage desired. A business with a high number of claims or a poor safety record may pay more for insurance than a business with a good claims history and safety record. Additionally, businesses that have more extensive coverage may pay more than those that have a more basic coverage.
At Ellerhorst Insurance Agency, we work with a variety of insurance carriers to provide our clients with the best coverage at the most competitive rates. We can help you understand the costs associated with different types of coverage and help you find a policy that fits within your budget.
Why Do I Need Business Insurance in Ohio?
Business insurance is an essential aspect of risk management for any business. It provides protection against a wide range of potential losses and helps ensure the financial stability and success of a company. Without insurance, a single accident or lawsuit could be financially devastating for a small business, potentially leading to bankruptcy.
Having the right insurance coverage can help protect a business’s assets, such as buildings and equipment, as well as its income and financial stability. It can provide protection for business owners and employees in case of accidents or injuries that occur on the job.
The right coverage can also help cover the costs associated with legal proceedings, such as legal fees, settlements, and judgments. Not only that, but many customers, suppliers, landlords, and others may require a business to have certain types of insurance in order to do business with them.
In short, investing in comprehensive business insurance can provide peace of mind and security for business owners, knowing that their business and assets are protected against potential losses. We can help you understand the coverage options available and find the right policy for your business.
Businesses We Cover
At Ellerhorst Insurance Agency, we specialize in providing insurance coverage for a wide range of businesses. We understand that every business is unique and has different insurance needs, and we work with our clients to find the coverage that fits their specific needs.
At Ellerhorst Insurance Agency, we are dedicated to helping businesses find the coverage they need to protect themselves and their assets. If you’re looking for insurance for your business, please don’t hesitate to contact us for more information or to request a quote. We’ll be happy to help you find the coverage that’s right for you.
List Of The Different Industries We Help Protect
Auto & Marine Dealers
Mechanical & Auto Body Shops
Frequently Asked Business Insurance Questions
Commercial property insurance m many unforeseen protects your company’s physical assets froevents, such as fire, explosion, storms, theft and vandalism. Additional coverage is often also available for floods, earthquakes, equipment breakdown and other direct causes of loss to your business.