Policies Entrepreneurs Need from a Trusted Business Insurance Agent


Opening your own small business is about as American as apple pie; it is a key component of “The American Dream”. Few things in life can compare to the feeling of pride coursing through your body as you open your new store for the first time. This is why Faith Thomas of INC.com suggests that you do everything you can to protect your business from unforeseen accidents:

Properly Insure

“There’s risk in every endeavor and maybe none more so than that of an entrepreneur who may have mortgaged their home or emptied their life savings. To ensure that all your hard work isn’t negated by some unforeseen circumstance, you need to secure adequate business insurance to protect you, your investment, your employees, and your bottom line. 

The main challenge is determining the best coverage. Are you carrying the right kind of insurance to protect you, your company, your employees, and your customers? How much is too much? Are you underinsured? Insurance preparations need to be made in the early stages of crafting your business plan.”

Before you open your doors to customers for the first time, make sure that your business has the appropriate insurance coverage. What types of insurance, you ask? Typically, experienced business insurance brokers recommend the following coverage to new businesses:

Property and Liability Insurance

General liability insurance protects your business’ assets from any claims made against it from external sources. This is often used when a customer is injured by a product or service you provide. Legal cases concerning libel, copyrights, and misleading advertising are also covered by this type of insurance.

Property insurance is usually tied-in with general liability insurance. In the event that disasters like fires or floods destroy your store, the insurance company will pay for the necessary repairs. The policy’s coverage also extends to damaged equipment and machines needed for business operations.

Workers’ Compensation

Workers’ compensation insurance covers the medical expenses and lost wages of your employees if they are injured at work. Not only does this help your employees, it also protects your business from being sued for compensation. In Michigan, businesses that have 3 or more part-time employees, or a single employee who works 35 hours a week, are required to have workers’ compensation insurance.

According to statistics from the Insurance Information Institute, more than 25 percent of business that close down after an unforeseen disaster never reopen. Do your best to avoid joining this unfortunate statistic by purchasing comprehensive coverage from a trusted business insurance agent like one from Allied Insurance Managers, Inc.

(Source: How to Properly Insure Your Business and Employees; INC.com; March 18, 2011)

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Headquartered in Rochester Hills, Mich., Allied Insurance Managers is one of the largest, privately-owned, independent insurance agencies in Michigan.