Business Insurance 101- What You Need to Know

Business Insurance 101 – What You Need to Know

What is business insurance, and how do you know if you're buying the right policies for your company? In this video, we break down everything small and medium-sized business owners need to know—from how insurance policies are structured, to the must-have coverages you should consider, and how to choose the right insurance provider for your unique needs.

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🎯 Whether you're starting a business or looking to better understand your current coverage, this video provides a practical, plain-English guide to business insurance. Learn about common coverages like general liability, workers comp, commercial auto, cyber, and umbrella insurance—and why having the right protection in place can make or break your business when a claim hits.

📌 In this video:
00:00 – Introduction to Business Insurance
01:26 – How Business Insurance Policies Are Structured
02:00 – Common Exclusions and Limits
04:00 – Policy Definitions and Deductibles
06:00 – 6 Core Business Insurance Policies Explained
11:37 – How to Buy Business Insurance (and the pros/cons of each method)
13:15 – Why Work With an Independent Broker Like Us

➡️ Get clear, honest advice from a team that specializes exclusively in business insurance. Let’s talk and see if we’re the right fit for your needs.

Hashtags:
#BusinessInsurance #InsuranceForSmallBusiness #CommercialInsurance #WorkersComp #cyberinsurance

↪︎TRANSCRIPT↩︎

Hi, I’m Gordon Coyle. In this video I’m going to give you a broad overview of business insurance: how policies work, the types of coverage most business owners need, and how to think about buying the right protection.

This is a longer video than most, but my goal is simple: help you understand insurance well enough to make better decisions. You’re buying protection for what may be your biggest asset—your business. You can go cheap and risk missing coverage, or you can do it right and safeguard the asset. If you have a question I don’t answer here, reach out. I’m happy to help, even if you’re not ready to buy or switch brokers.

Let’s start with how most insurance policies are structured. There are five key parts. First is the coverage grant—what the policy intends to cover and under what circumstances. Second are exclusions. Policies start broad and then narrow what’s covered. Many exclusions exist because certain risks are meant to be covered by other policies, and without exclusions, coverage would be too expensive. Third are limits—how much the insurer will pay for a covered claim. For liability, pay attention to per-occurrence limits and aggregate limits. Fourth are definitions. Insurance is a legal contract, and words can have very specific meanings. If a term is defined, you need to read how the insurer defines it. Fifth is the deductible (sometimes called a retention), which is what you pay out of pocket before insurance pays.

Now, what coverages do most businesses need? This is a high-level overview. First is property insurance for your building, contents, tenant improvements, and business income. Business income coverage helps replace income when a covered loss forces you to shut down. Second is general liability insurance, which covers third-party bodily injury, property damage, and personal injury claims—plus defense costs. Third is workers compensation for employee injuries. It’s mandatory in most states when you have employees, and trying to “1099” your way around it can backfire if someone gets hurt. Fourth is commercial auto for business vehicles, plus hired and non-owned auto exposures. Fifth is umbrella or excess liability, which provides additional protection above your primary liability policies. A $1M limit is often not enough for serious claims today.

Depending on your business, you may also need other coverages like professional liability (E&O), employment practices liability (EPLI), cyber insurance, and sometimes directors and officers (D&O). There are also specialty coverages like flood, inland marine, and equipment breakdown.

So how do you buy business insurance? You can buy direct from one insurer, use an insurtech platform, or work with an independent broker. Buying direct often limits you to one carrier’s option. Buying with little human guidance can leave you guessing what to ask for. A strong independent broker can shop multiple insurers, identify gaps, and advocate for you when something goes wrong.

If you want help reviewing what you have or figuring out what you need, my contact info is in the description. Thanks for watching.