Finding the Insurance Coverages That Match the Size of Your Louisiana Business
January 31, 2022
When evaluating the insurance needs of your Louisiana business, often one of the best places to start is considering the size of your business. Size is most often determined by your business’s total number of employees and annual revenue. As your business grows so does your risk. Below we’ll outlined some of the things to consider depending on where your business falls.
Home-Based Businesses
These days, many successful businesses launch right from the owner’s home. In fact, according to the U.S. Small Business Administration (SBA), more than half of American businesses are based out of the owner’s home. Not only do these businesses generally have less risk, but they also often have less insurance expenses due to a lower amount of commercial property. Some states don’t even require businesses without employees and contractors to carry workers’ compensation.
One of the important things to consider for these businesses is whether your homeowner’s insurance is sufficient for your business. In fact, some home-based business activities can void your home insurance. That’s why it is important to consult with your insurance agent about any changes that make affect your coverage. Just because your business is based from your home, it doesn’t mean you don’t need business insurance.
Small Businesses
If you make less than a few million dollars annually and have 50 or fewer employees, chances are you’re a small business. While you can purchase customized and unique insurance coverage options, often a BOP or Business Owners Policy is all you’ll need with additional coverages here and there. A BOP is a standardized policy that bundles General Liability and Commercial Property Insurance into an affordable package. To learn more, visit our Business Owners Policy page.
Other insurance policies that most small businesses should also consider is Professional Liability, Business Interruption and Workers’ Compensation Insurance.
Medium-Sized Businesses
If your business has been growing and you don’t fall into the small business category anymore, you are likely now considered a medium-sized business. Companies this size generally have 50 to 1,000 employees with revenue between $10 million and $1 billion annually. Insurance companies have special policies that are made specifically for businesses this size. This helps cover the increased size and risk these companies have.
One policy businesses of all sizes need to consider, but especially medium-sized and larger companies, is cyber liability insurance. A cyber liability insurance policy can help your business with identity theft, reputation recovery, business interruption, loss or corruption of data, cyber extortion and more.
Large Businesses
Large businesses have at least 500 employees and meet the revenue requirements that are dependent on the industry they are in. Big, complex businesses like this have multi-million dollar risks, therefore policies are tailored to meet their specific needs and requirements. When a company is this size, insurance companies will even have dedicated employees helping analyze and manage risk recommending preventative measures and plans.
While your small or medium sized business may not need a large business’s level of risk management resources, it’s still important to understand your risk and risk tolerance. This is where an independent insurance agency like Lewis Mohr comes in. We learn about your business, industry, unique risk and needs, and tailor an insurance policy to fit you. If you’re unsure if you have the correct policies and coverages in place, or need a completely new policy, please give us a call or fill out our contact form. Our Baton Rouge, Louisiana based insurance experts are ready to help!
