Your small business’ coverage depends on whether or not you have the right business insurance in place.
The kind and amount of insurance coverage that is required for your business should be based on several factors. What line of business are you in? Where are you located? How many employees are under your service? Small businesses come in many sizes and require the right protection for their size. Definitions may vary but are generally based on the number of employees and total sales. If you own a small business and want to ensure that it is protected to its full capacity, take these tips into consideration.
There are many successful businesses that started off right in their home. Generally, a home-based business consists of zero or one employee and makes relatively little revenue. You may think that homeowners insurance will cover liability and damages to your equipment because it is inside of your house, but you would be wrong. You need a business insurance policy in order to be fully protected from the risks of a home-based business.
If your business has fewer than 100 employees and makes revenue of up to about $5 million or less, your business is considered to be a small business. The common small business insurance policy is called “business owners policy,” or BOP, which bundles policies that most businesses require.