What are the requirements for business insurance in Missouri?
In Missouri, businesses must carry a minimum amount of workers’ compensation insurance coverage. This helps provide benefits to employees who were hurt while on the job.
What is workers’ compensation insurance in Mississippi?
Workers’ compensation in Missouri covers medical costs and lost wages for employees injured or made ill due to their employment. Workers’ compensation also covers employee rehabilitation and retraining costs, as well as death benefits for surviving family members if the illness or injury leads to death.
What are the types of business insurance in Missouri?
The content of your business insurance policy depends on your company, but most policies include:
General liability
General liability insurance is a coverage that can help protect you from various claims, including bodily injury, property damage, personal injury, and others that can arise from your business operations. For example, A client visits your office and trips over a box you left in the entryway. Business liability insurance could help with medical costs if your client sued you for his injuries.
General Liability insurance does not cover any errors or omissions in the work you perform and professional mistakes; If you make a mistake with the job you were hired to do, like installing a faulty electrical system.
Workers compensation
If one of your employees gets hurt on the job, workers’ compensation pays for their medical care and some or all of their lost wages while they’re recovering. That’s important because it gives them money in hand while they’re out sick or injured instead of forcing them to go through the court system to get compensated for medical bills and lost wages.
Workers’ compensation insurance does not cover business vehicle accidents, automobile accidents, or construction defects. Most workers’ compensation policies also exclude intentionally self-inflicted injuries and injuries sustained when the employee is under the influence of drugs or alcohol.
Product liability
If you’re sued, this covers your company because a product you made or sold caused harm to someone. For example, let’s say you manufacture and sell children’s toys. A child gets injured while using one of your toys, and the parents sue you. Product liability insurance would cover the cost of defending the lawsuit and damages if you’re found liable.
Here are some things product liability insurance does not cover:
- Repair, replacement, or maintenance costs
- Consequential damages
- Recalls
- Property damage to your products
Business interruption
This covers lost income if a covered peril causes your business to temporarily shut down — for example, if a fire in adjacent building forces you out of your office for several months. Since many businesses can’t afford to operate without any income, this is an important type of coverage for many companies.
However, it’s important to note that business interruption insurance does not cover everything. Here are three exclusions:
- Damages or losses due to employee theft
- Permanent closure of your business (if you choose to shut down permanently instead of recovering)
- Losses due to normal wear and tear
Commercial Auto insurance
Commercial Auto insurance protects vehicles used in business operations, such as cars, trucks, and vans. If a covered accident occurs, Commercial Auto insurance may provide coverage for physical damage and bodily injury caused by a collision with another vehicle or object and damage caused by something other than collisions, such as fire, theft, or vandalism.
Commercial Auto insurance does not cover:
- Loss or damage caused by wear and tear, marring, scratching, or rusting.
- Depreciation if the car is declared a total loss after an accident or theft.
- Theft of cars with keys left in them.
How much does business insurance cost in Missouri?
Here are five factors that affect business insurance prices:
- Company size: The larger a company is, the more employees it has and the more assets it can protect. The more people and assets a company has, the higher its insurance costs.
- Your business location: companies in areas prone to natural disasters such as earthquakes and hurricanes may have to pay higher premiums because of this risk.
- Claims history: If you’ve had a claim on a previous policy, it may be necessary for you to pay more for coverage this time around; however, this factor doesn’t necessarily cause you to pay the same amount as someone who’s never had a claim before.
- Coverage limits: The higher the limit of your business insurance, the more you will pay for your premiums. Higher limits are recommended for larger businesses with a greater liability risk.
- Business Activities: The more risky your business activities are, the higher your premiums will likely be for coverage. For example, driving for a living vs. working in an office carries significantly different risks and will be treated differently by an insurer.
How to choose the best business insurance in Missouri
Here are some tips to help you choose the right business insurance:
- Consider how much coverage you need: A more specific rule of thumb is to determine what it would cost to replace or repair everything that could be damaged or destroyed by fire, wind, water, or theft, and then purchase enough insurance to cover those costs.
- Check on your local laws: Some states require businesses to carry certain types of insurance coverage. For example, employers must carry workers’ compensation insurance in some states if they employ three or more people.
- Shop Around: Get quotes from several companies and compare their products, premiums, limits, and deductibles. The more quotes you get, the better chance you will find the most affordable insurance for your company.
- Experience: Has the insurer been around for a long time? Are they licensed and in good standing with their state? What are their financial ratings? It’s important to do your research before choosing an insurance provider.
- Know what’s included and excluded: Unfortunately, some insurance providers will quote a very low premium only to charge more later on because of exclusions or hidden costs associated with that policy.