Protect the Business
You Worked to Build.
Your Business Is Not Just an Extension of Your Personal Policy
Personal auto and homeowners insurance are designed around personal exposures. Once you are using vehicles, equipment, property or your home for business, those personal policies may not protect the business the way you expect.
The goal is to insure the actual business you run, not force it into a one-size-fits-all policy.
Small Business Coverage Can Include
Every business is different, but these are some of the core areas I look at when helping Arizona small business owners.
General Liability
Helps protect the business from certain claims involving bodily injury, property damage and other covered liability exposures.
Business Property
Coverage can help protect business equipment, inventory, furnishings and other property against covered losses.
Commercial Auto
Vehicles used for business may need commercial auto coverage depending on ownership, use, drivers and the type of work being performed.
Business Owners Policy
A BOP may combine property and liability coverage into one package for qualifying small businesses.
Tools & Equipment
Business tools and equipment that move between locations may need coverage beyond what a basic property policy provides.
Additional Coverage
Depending on the business, other coverage may be needed for professional liability, cyber, workers compensation or other exposures.
Common Small Business Coverage Gaps
Business use can change how a vehicle needs to be insured. Ownership, frequency of use, employees and the type of work all matter.
Homeowners policies can have limitations on business property and liability. Working from home does not automatically mean your business is properly insured.
Contract requirements and the size of a potential claim can make low liability limits a problem even for a small operation.
Equipment that travels to job sites or customer locations may need separate inland marine or equipment coverage.
Equipment, inventory and improvements can increase over time. Limits should be reviewed as the business grows.
If the business changes what it does, the insurance needs to change too. New operations can create exposures the original policy was never designed to cover.
Personal Insurance and Business Insurance Are Not the Same Thing
Using your personal vehicle, garage, home office or equipment for business can create gaps when the personal policy was never designed for that exposure.
Small Business Insurance Questions
These are some of the questions worth asking when reviewing insurance for an Arizona small business.
What insurance does a small business need?
It depends on the business. General liability is common, but property, commercial auto, tools and equipment, workers compensation, professional liability and other coverages may be needed depending on your operations.
Does my homeowners insurance cover my home-based business?
A homeowners policy may provide limited coverage for certain business property, but business liability and larger property exposures may require separate business insurance.
Can I use my personal auto insurance for business driving?
Sometimes limited business use may be acceptable, but ownership, frequency, type of business and how the vehicle is used can change the answer. It should be reviewed with the carrier.
What is a business owners policy?
A business owners policy, often called a BOP, generally combines certain property and liability coverages into one package for eligible small businesses.
Do I need insurance if I am a sole proprietor?
Operating as a sole proprietor does not eliminate liability or property risk. The insurance need depends on what you do, what you own and what could happen in the course of your work.
Do independent contractors need business insurance?
Many do. Contracts, customers or landlords may require liability insurance, and the contractor may also have equipment, vehicle or professional exposures that need coverage.
Does business insurance cover tools and equipment?
It can, but the coverage depends on where the equipment is located and how it moves. Tools that travel to job sites may need coverage designed specifically for property away from the main premises.
When should I review my business insurance?
Any time the business adds employees, vehicles, equipment, locations, services or significant revenue, it is worth reviewing whether the existing policy still matches the operation.
Not Sure If Your Business Is Properly Covered?
Send me your current business policies and tell me how the business actually operates. I’ll review the liability, property, vehicles and other exposures and tell you what I see.