If you or a loved one owns a business, you know how difficult, yet rewarding, this venture can be. But let’s face it; owning a business be costly, especially when there are plenty of expenses that you need to keep track of.
One of the primary expenses any business should keep track of, however, revolves around the type of business insurances that it uses. While business insurance can be costly to a business’ bottom line, there are ways discussed below that you can utilize to save you money while maintaining the business insurance coverage your establishment needs.
Trust that your online Texas business insurance quote providers at Quick Quality Quotes can help you get the affordable coverage you need should you have to protect your assets when an accident occurs within your business or give employees health insurance.
What Types of Business Insurances Should a Business Have?
Expenses pile up depending on the type of business you have but will generally fall under employee stipends, property maintenance, and state-mandated insurances. As a business owner in Texas, some of the specifically mandated forms of insurance you will become familiar with are:
- General business liability insurance
- Workers compensation insurance
- Professional liability insurance
- Business owners insurance
Only a handful of these types of insurance might be necessary for your specific business, but luckily, there are also a mass of benefits allotted to business owners in Texas, one of which is tax deductions. As stated by the Internal Revenue Service (IRS), expenses that can be deducted are considered “helpful and appropriate” to maintaining the business.
You may be wondering, “Does this include the costs of insurance?” The answer is: absolutely.
These deductions even include costs related to insurance, such as the costs of financing a premium.
What Are Helpful and Appropriate Expenses?
The following are a handful of common types of insurances that are likely to be considered a deductible for a business in Texas:
- Property Insurance – This coverage will safeguard property assets lost due to a disaster such as fires, storms, natural disasters, and so forth.
- Commercial Auto Insurance – In the situation of an accident or loss pertaining to a company-owned vehicle, this coverage will cover any damages.
- Business Interruption Insurance – Referred to secondly as extra expense insurance, this coverage will remedy losses in profit, payroll, relocation, and general expenses of operation when a business is unable to run properly.
- Health Insurance – If your business has employees to which you provide health insurance, their insurance premiums can be deducted from your corporate tax return.
- General Liability Insurance – As previously mentioned, this is one of the most common forms of insurance required of businesses by law. This coverage functions to safeguard businesses regarding claims of bodily harm, property damage, or mental distress caused by a company’s services, operations, or products.
- Professional Liability Insurance – Also referred to as Errors and Omissions (E&O) Insurance, this coverage protects against claims of negligence in regards to professional advice and services. This coverage is commonly necessary among brokers, attorneys, and engineering firms.
- Cyber Liability Insurance – When a business is responsible for a client’s breach of data, this coverage will remedy any resulting losses. This is an especially vital insurance for those who run online businesses.
All in all, it is best to consult the online Texas business insurance quote providers of Quick Quality Quotes in order to attain information tailored to your business expenses specifically.