The short answer is yes, you do need business insurance. The longer answer is that each and every business will have different insurance needs and types of coverage. M&P Insurance can help you find out what types of insurance you need, and keep your business covered in the event of a lawsuit, employee or client accident, or even a natural disaster. Let’s go into some more detail about why you need business insurance and why it’s such a great asset for your business.
What Are The Requirements For Arkansas Business Insurance?
While many types of business insurance aren’t legally required by the state of Arkansas, it’s highly encouraged that you get certain coverages based on the kind of business you have. A common policy to look into is general liability coverage. This will protect your business in the event a customer or customer’s property is damaged and your product or service is the cause.
However, there are a couple of types of insurance coverage that could be required depending on your individual business. One is workers compensation insurance. Most Arkansas businesses with three or more employees will be required to have a workers compensation policy, but there are instances where smaller businesses will still be required to carry it as well.
Another possible requirement is commercial auto insurance, again depending on your individual business circumstances. M&P Insurance can help with both types of policies and is happy to answer any questions you have about your insurance needs. We are always ready to make sure your business is properly protected.
How Much Will Business Insurance Cost?
The cost of business insurance is going to differ from company to company. Bigger companies or companies in higher risk industries are going to incur higher insurance costs than smaller ones with less risk. While it can seem like an unnecessary or burdensome cost initially, you’ll thank yourself later when you have a claim arise. If you are a small business with no employees, consider a business owners policy to save some money. This type will typically include general liability insurance, property insurance, and business income insurance. By bundling these three policies together, it can sometimes be a money-saver.
Why Do I Need Business Insurance?
There are several reasons that having business insurance is a smart investment for your company, aside from it being legally required in some instances.
- Having business insurance can save your business from financial ruin in the event of a claim. If an accident happens and causes damage to a customer or customer’s property, you could be liable; without a general liability policy, this will cost you a pretty penny. Just because you are incorporated or an LLC, it doesn’t rid you of all liability.
- As mentioned briefly above under the legal requirements, commercial auto insurance is important if your business utilizes company vehicles to transport employees, goods, or equipment. If one of these company vehicles gets into an accident, commercial auto insurance will cover any costs associated with damage to the vehicle or cargo, or damage done by the vehicle to other vehicles or property.
- If your company deals with sensitive customer data, you are liable if a data breach or cyber attack happens. With the growth of technology and the Internet, this risk is increasing all the time. If an unfortunate cyber or data-related accident occurs, cyber liability insurance can help protect your business from the costs associated with such an attack.
- Another great benefit to having business insurance is not having to worry about the things you can’t control like fires, theft, or natural disasters. These things are stressful enough to deal with. You shouldn’t have to also worry about how you’re going to recover financially as a business. With a business interruption policy, if a natural disaster strikes and you have to close your business in order to rebuild and recover, this policy will compensate you for the lost revenue.
How Can M&P Insurance Help?
M&P is a native Arkansas business. We’ve been around for almost 100 years helping people with their financial and insurance needs. In that time, we’ve become accustomed to the needs of Arkansas businesses. If you have questions about your business insurance coverage, or just want to make sure you’re properly covered, we would be happy to help. Give us a call at 870-523-6771, or drop by our office in Newport at 105 Laurel St.