But is commercial insurance required for every type of business? The answer depends in part on the size and structure of your business.
Our Flowood, MS team at Insurance Protection Specialists looks at some of the factors that can determine whether or not you need commercial insurance.
Do You Need Commercial Insurance?
Types of Business Structures
The type of business structure you choose will influence whether or not commercial insurance is required. For instance, if you decide to set up your business as an LLC (Limited Liability Company), then you will likely be required to carry certain types of liability insurance such as general liability and professional liability. The same applies to corporations, partnerships, and sole proprietorships. Each type of organization has its own requirements when it comes to insurance coverage.
Another factor that will determine whether or not you need commercial insurance is the size of your business. If you have fewer than 10 employees and your annual revenues are under $1 million per year, then chances are that you won’t need any special types of commercial insurance policies beyond basic general liability coverage.
However, suppose your business has more than ten employees or makes over $1 million annually. In that case, it might be wise for you to look into purchasing additional types of coverage such as workers’ compensation or property damage policies. This way, you can ensure that your assets and personnel are protected in case something goes wrong during the course of normal operations.
Give Us A Call
Ultimately, there is no one-size-fits-all answer when it comes to determining whether or not a business needs commercial insurance in Flowood, MS. Contact Insurance Protection Specialists today – we can help you figure out the best commercial insurance options for today and the future.