Often, a common businessman is likely to get confused between an insurance agent and an insurance broker. A great deal of this confusion can be attributed to the fact that both of these terms are often interchangeably used by many, including some in print and online media. Quite expectedly, this confusion prevents a person to visit the right agent or broker who meets his needs.
Essentially, an insurance agent is a person who advises and promotes the products of a particular insurance company. He or she is responsible for describing which product may suit the business insurance needs of a particular client. Insurance agents are also mandated to have a certification in some states.
On the other hand, a business insurance broker is a kind of a super independent agent. He typically will have multiple product offerings from different companies. In case you have a business that has a significant size, visiting a business broker, who can provide you with more business insurance related options, may be advisable. Also, a broker is likely to give you a better deal on insurance premium rates
The business insurance policy for your home business may cover many things depending on the coverage you choose. Some of the entities that need to be covered in Business Insurance Policy relate to the following:
- Business Property: Several articles such as fax machine, photocopier and computer are used in a home business. These should be insured against possible damages like ‘breaking out of fire’, ‘theft, etc.
- Liability: This is to protect against the claims made by others in case your business harms them in any way. This is particularly important in case visitors come to the place where business is being operated.
- Product Liability: This comes into picture if there are chances of the product harming any other’s property.
- Auto: In case there are vehicles being used by the home business, coverage for these should be considered, as these are not protected under the personal auto policies.
Some of the Business Insurance Policies come with additional endorsements on the standard homeowners’ policies. Others provide the option of availing the policies that cover both the home and the office.
The Insurance Policy seekers should weigh the pros and cons of these Policies and those offered by separate Insurance Policy. Eventually, the compliance with all the laws and regulations also need to be paid attention to.