Business Insurance
There
are a couple of insurances that every business needs.
Liability, Risk Management, and Worker Compensation and
State Unemployment Insurance if you have employees.
Liability
Every organization is vulnerable to low probability events
that could have a potentially disastrous effect. A small
or new business is no exception although it is easy to
ignore the probability of such events under the pressures
of developing and maintaining a business. Identifying
and quickly dealing with such unlikely events is primarily
the responsibility of management. Also only management
has the ability to assess the full potential impact of
these events on the overall organization. Some of the
potentially disastrous events that may affect your business
are
Theft
of property: Stealing, Embezzlement, Lying,
Breach of laws: Local, State Federal
Computer crime,
Fire and explosion:
Accidents
Risk
Management:
What will happen to your company if something happens to
you? Did you cover this when you wrote your business plan,
or by-laws? If you are a sole proprietor, you might want
to consider having an additional life insurance policy with
the company as beneficiary. Check with your insurance agent
to see what they have available so the company continues
to operate according to your plan
Workers
Compensation
This covers your employees for injuries on the job, and
loss of income. It is required in each state. Your rate
is based on your gross wages, and the type of work that
is done. You will need to pay in advance with the insurance
company reimbursing or billing you for the actual difference.
The first year you may be required to submit a quarterly
audit report so the discrepancy is as low as possible.
SUI
State Unemployment Insurance is also required in all states.
The employee usually pays a small percentage based on their
gross income, with the employer picking up a larger percentage.
This amount is regulated by the state, and you will receive
notice before the beginning of each year as to your personal
rate. This will need to be paid quarterly. Alaska allows
you to do this online, with a direct debit from your bank
account.
