Business Insurance​

Business insurance coverage protects businesses from losses due to events that may occur during the normal course of business. For example, when a business suffers from financial loss due to damaged inventory, the business will file a claim with their insurance company. The claim is evaluated by the insurer and the business will receive compensation (if they’re eligible) from the insurer to compensate for the loss.

Premiums are based on the insurance policy the business purchases. Additionally, the company’s structure will also be evaluated including but not limited to capital structure, number of employees, and annual operating costs. Small businesses with low risk for damages will likely pay less for premiums in comparison to larger, more complex businesses.

Because business insurance is considered an operational cost, it may be tax deductible. For example, general liability and professional liability insurance is typically tax deductible – contact your AP Insurance advisor for information regarding eligibility for business insurance tax deductions.

Risk are inherent to every environment and business – they cannot be avoided. Any area of a business has the potential to be damaged; for example:

• A factory’s machinery can break down, negatively impacting the flow of products to distributors;
• Employees may be injured, resulting in lost revenue; and,
• Key leadership figures may leave a company, taking with them valuable intellectual property.

When third parties wish to collaborate with a business, they’ll often want to ensure that the company they’re going to be working with can protect itself financially should something go wrong. Therefore, they’ll want to know what type of insurance the company has.