A corporation is a complex business organization with expanded liability risks. Corporations often have many employees and must abide by strict legal requirements and tax regulations. Depending upon the corporate structure, shareholders may own the company, and the board of directors may have more or less impact on the function of the corporation. But ultimately, the company is responsible for all actions and financial moves the business makes. No matter what kind of service you offer or product you sell, corporate insurance is a must.
The complexities of business insurance are best managed with the help of corporate insurance advisers. You can connect with an independent agent in the Trusted Choice® network who can help you navigate the many requirements and options. An independent agent has the ability to compare policies and quotes from several different corporate insurance companies to find the right coverage for your needs. Contact a local member agent in your area today.
The process of forming a corporation is complex. There are three types of corporations: S-Corps, C-Corps and LLCs. Each has its benefits in terms of structure and protection for the individuals involved. For example, generally, only smaller businesses can take advantage of the tax liability pass-through of an S-Corp. A legal or accounting firm specializing in corporate entities can help you choose the best model for you.
You’ll need to register your corporation within the state in which your company operates and obtain the necessary permits. Don’t forget to register with the IRS and state revenue bureaus so that you can be taxed appropriately.
This might seem like a lot of work, but running a corporation has some great perks:
Running a corporate business entity also has its disadvantages, including:
For many businesses, the move to corporate status is a huge leap that requires a lot of effort and investment. Just like when you move to a new house or buy a new car, you need to update your policy to corporate insurance coverage when you form an S-Corp, C-Corp or LLC.
For any insurance company issuing a commercial policy, the name of the game is risk. While all businesses have an element of risk, the types of policies that you need should specifically address individual threats.
Depending upon the products and services your company provides, the size of your company, number of employees and many other factors, you will need some combination of coverage types. The specific corporate insurance in your insurance portfolio may include:
A small business that has less than 500 people doesn’t face the same liability issues as a multi-national company with thousands of employees. While a solid business insurance plan is required for both large and small companies, more underwriting is required for the corporation due to its size and more complex coverage may be necessary.
For this reason, it is important to work with a knowledgeable agent who can fully assess your risks and concerns and tailor a complete insurance plan to your company.
Corporate liability insurance, in all of its forms, is arguably the most important insurance for a corporation. A corporate entity can become somewhat of a target in our litigious society, making this coverage critical to protect the financial well-being of your corporation.
Several forms of liability protection are available for corporations, including:
Offering health benefits to your staff has a number of benefits. For example:
Group health insurance can be expensive since employers foot at least half of the premium, but they are completely tax-deductible. The Affordable Care Act brings many changes to the healthcare system, including federal regulations on the minimum amount of healthcare that can be offered to employees.
If your corporation already offers health insurance, you’re exempt from this standard, but it’s a good idea to speak with your insurance agent to make sure you’re in compliance with federal law. Otherwise, you could be facing hefty fines.
In the corporate world, it often takes one or more professional teams of advisors to fully manage risk. Larger corporations often utilize a range of services to identify and mitigate the risks of the enterprise.
While there is often cross-over in the functions of the various professional services your corporation may need, sometimes all are necessary to ensure that your corporation keeps fully apprised of risks in order to manage them proactively.
For example, you may require:
An independent agent in the Trusted Choice network who specializes in business insurance can be a valuable part of your risk mitigation plan. One of these agents can help to fully assess your risks and get the right corporate insurance in place to protect your company financially. Because they have access to numerous commercial insurance companies, these agents can manage your complete portfolio of corporate insurance, even when various policies must be assembled from multiple providers.
When you work with an independent agent in the Trusted Choice network, you have a local insurance professional who will meet with you, help to fully review your corporation's risks and identify the exact coverage you will need to manage them.
Independent agents have signed a Pledge of Performance and are committed to customer service. Your agent will advocate for you and ensure that your corporate insurance needs are met. Contact a member agent today and get the protection you need.