Insureon Blog

Commercial Insurance vs. Health Insurance for Small Businesses

30. March 2016 08:04

health insurance claim form on a clipboard

Owning a small business means you’re the boss – no more relying on a corporate job for your livelihood or income. But as they say, freedom isn't free. Many full-time corporate jobs offer health insurance benefits and liability protection, a perk you forgo when you strike out on your own.

Now that you’re responsible for handling your own health insurance and business risks, it's easy to get preoccupied with health coverage and forget about the importance of small business insurance. We get that, but let's make a case for why both are essential to the success of your business.

Health Insurance & Workers’ Compensation Insurance: Keys to Compliance

As you transition from employee to employer, get familiar with the coverage you may be required to offer when you hire your first workers:

The major difference between these policies is that health insurance only applies to non-work injuries or healthcare, while Workers’ Comp only applies to workplace or job-related injuries. Most health insurance policies may exclude coverage for injuries and illnesses that are covered by Workers’ Compensation Insurance.

While they cover different things, these policies may have a direct impact on each other. If an employer offers health coverage and other initiatives (e.g., discounted gym memberships, healthy snack options, flexible work hours, etc.), they may lower their Workers’ Comp rates by potentially preventing future claims.

Commercial Insurance Considerations for Small Businesses

The side of running a business you may not be as familiar with? The potential liabilities your business may face when you open your doors.

An unattended puddle in an aisle of your store could lead to a slip-and-fall injury lawsuit. Borrow a competitor’s slogan in your advertising campaign, and you may face a copyright infringement lawsuit. Miss a client’s deadline outlined in the contract, and you may be up against a professional liability lawsuit.

To address these common risks, many small-business owners carry the following commercial insurance policies:

When you’re employed by a company, your employer assumes these risks for you and provides protection against your mistakes or errors. When you’re a small-business owner, it's up to you to proactively address these risks.

Check out “The 7 People in Your Life Who Need Small Business Liability Insurance” to learn about the types of businesses that can benefit from commercial insurance.


Business Owner's Policy | Errors and Omissions Insurance | General | General Liability Insurance | Property Insurance | Small Business | Small Business Risk Management | Tips for All Small Businesses | Workers' Compensation Insurance

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