Synergy Insurance Group Blog
When it comes to protecting your business, getting insurance is essential. Shopping around for a policy can get confusing because you may find yourself looking at many different types. It can become overwhelming since you don’t want insurance coverage that is too limited, but you do not wish to overspend either. To help you out, here are some of the essential types you must have for your small company.
Workers Compensation Insurance
This insurance is a state-mandated policy that every company must have, in case their workers are hurt while doing the requested job. Failure to have this kind of coverage for your employees can result in fines, or even worse, criminal penalties. This policy ensures that an employee who had a work-related injury will have their medical expenses covered while a part of their wage is also received during their period of recovery. It can also include your company’s defense in case a lawsuit occurs, and your employee tries to sue you because of the work-related injury.
The government also requires this insurance policy. It takes care of your employees in case of their termination from their job. However, unlike the worker's compensation insurance, it is not something that you buy from an insurance company. You pay for it whenever you pay for your employees’ payroll taxes. They are called the federal unemployment taxes (FUTA) and state unemployment taxes (SUTA). How much you pay will depend on the number of employees that you have, employee turnover, and the time that your business has been established. If a former employee is jobless, they can apply to receive unemployment benefits.
General Liability Insurance
Unlike the first two policies, general liability insurance is not a required purchase for businesses, but it is helpful. This insurance policy protects your business in case a client, vendor, or customer becomes injured from using your product, property, or service. It covers damages such as physical injuries on business property, property damage to another individual or business, and advertising injuries like libel and slander. If accidents are likely to occur in your line of business, purchasing this insurance is highly recommended.
Starting up a business can leave you with a lot of uncertainties. You take risks regularly, but it would not hurt to have protection to your assets like business insurance.
At Synergy Insurance Group, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (763) 797-9999. Get your free quote today by CLICKING HERE.
We are licensed in Minnesota, Iowa, Michigan, North Dakota and Wisconsin.
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