Many small businesses or start-up enterprises do not realize that they need insurance protection. However, they do require the coverage if they want to insure their financial future. The type of insurance you choose for a small business is then based on several criteria. For example, when buying the protection, you need to consider the activities of the business, your location, and the number of people that you have on your staff.
Buying Insurance for a Home-Based Business
Even if you own a home-based business, you still need business insurance in Tulsa, OK. Every home business needs to be insured against risk. So, if you operate out of your home, your homeowner’s insurance cannot in and of itself cover your business against liability or a property loss related to your professional activities.
Financial Protection for Small Businesses
If you know everyone’s name in your company and you make $5 million or less yearly, then you are typically classified as a small business. Some business insurance companies consider companies that operate with up to 50 employees as small businesses. On the other hand, the Small Business Administration (SBA) defines a small business as a company that is set up to make a profit and is operated and owned independently.
Insurance for Medium-Sized Businesses
If you need business insurance for a medium-sized company, then you typically have between 50 to 1,000 employees working for you and produce an annual revenue of at least $10 million. Insurance companies offer policies that are designed for medium-sized companies that feature both liability and property protection. If expensive equipment is used within your facility or your business has more than one location, then you may need to check into obtaining a customized type of plan.
Insurance for Large Companies
Tulsa business insurance protection is especially important to large companies as they normally have some million-dollar risks. Indeed, insurance is appreciated as large businesses hire employees whose sole job is to analyze the risks related to loss and accidents. This type of activity is known as risk management.
However, if you currently work out of your home or run a small company, you have to assess your risk differently. Ask an insurance professional to provide you with a risk assessment and recommendation for coverage.