What is Business Insurance?
New Hampshire businesses don’t all have the same risk exposures, but no company is immune from a law suit or potential property loss that could impact the bottom line, if not its very existence. Business insurance helps corporations large and small protect themselves from such financial disaster and keeps them doing what they do best - their work.
“Business insurance” is often used interchangeably with “commercial insurance.” Both terms describe policies that are intended for businesses, from sole proprietors to corporations, as opposed to personal policies that are meant for individuals.
What Businesses in New Hampshire Need Commercial Insurance?
All businesses in New Hampshire ought to consider getting commercial insurance, as no business is free of risk. While businesses don’t all need the same set of commercial policies, almost every business can benefit from at least a few protections that are available.
What Types of Commercial Policies Are Available?
Insurance companies offer a wide variety of commercial policies. Some protect against common risks and therefore, are appropriate for a range of businesses. Others are more specialized and only helpful in certain situations.
Some of the broader and more common policies that are available include:
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Commercial Auto Insurance
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Commercial Property Insurance
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General Liability Insurance
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Professional Liability Insurance
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Errors and Omissions Insurance
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Cyber Liability Insurance
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Workers Compensation Insurance
A few examples of more specialized policies that only certain businesses use are:
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Apartment Owners Insurance
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Auto Dealers Insurance
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Convenience Store Insurance
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Janitorial Insurance
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Laundromat Insurance
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Lawyers Professional Liability Insurance
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Liquor Liability
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Salon and Barber Insurance
In many cases, these specialized policies are package policies that combine several coverages together. They may combine some of the above-listed coverages and many others, depending on a business’ specific risk exposure and coverage needs.
Do Home-Based Sole Proprietors Need Commercial Insurance?
Personal insurance policies normally aren’t intended to insure commercial endeavors, even if such an endeavor is a small, home-based sole proprietorship. A few personal policies might offer basic protection for home businesses, but most don’t and those that do frequently only provide limited coverage. In most cases, people starting a home business should talk with an experienced agent about getting commercial coverage.
How Much Do Commercial Policies Cost?
The premiums that insurance companies charge for commercial policies varies. How much a particular policy costs depends on many factors, which might include the:
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Size and annual sales of a business
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Industry that a business operates in
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Location where a business’ headquarters is
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Types of coverage and limits selected
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Past claims history of a business
Despite how much premiums can vary, most policies are affordable -- especially once the protections they afford are taken into account. Paying a policy’s premiums is often much cheaper than facing a large claim without any protection.
Are Commercial Insurance Premiums Tax-Deductible?
Generally speaking, insurance premiums paid on commercial policies that provide coverage for businesses can be deducted as a business expense when filing taxes. If any portion of a policy’s coverage is used to provide personal insurance for someone (e.g. the business owner), the premiums may not be deductible. Because every business’ tax situation is different and tax laws change, business owners should consult a qualified tax professional to find out if their particular insurance premiums can be deducted.
How Can Businesses in New Hampshire Get the Right Business Insurance?
Since there are many commercial policies to consider and each policy’s premiums can vary, business owners should work with an independent insurance agent who specializes in business insurance when picking out policies. An independent agent can compare policies from multiple insurance companies, and someone who knows commercial coverage will be able to provide sage advice. For help finding the right policies for your New Hampshire business, contact the independent and knowledgeable insurance agents at HPM Insurance.
