Click to Call
Adams Insurance & Financial

3075 N Market Ave, Ste. 1,
Fayetteville, AR 72703

Get Directions

Arkansas Insurance Blog

Why Entrepreneurs Buy Commercial Insurance in Northwest Arkansas

Business entities at their initial stages may come with challenges and risks. For any business operator to remain in entrepreneurial undertakings, they should formulate a framework to minimize these impeding risks. Without commercial insurance in Northwest Arkansas, it may subject you to a stressful payment of legal fees in cash, relegating you to bankruptcy or culminating in detrimental financial consequences.

Don’t allow risks to dim your dream of initiating a successful business! Consult with our agents at Adams Insurance & Financial and get more information about commercial insurance. 

Is commercial insurance an asset to entrepreneurs?

Purchasing commercial insurance from Adams Insurance & Financial provides a broad spectrum of benefits to various entrepreneurs, including:

Covering of advertising liability

Any infringement of the copyright of any individual entity is equivalent to dire consequences from relevant authorities in Northwest Arkansas. If your business entity infringes on any copyright rule of other existing businesses or parties, liability insurance kicks in and caters to any legal liability against such accusations.

Protecting your employees

Statistics have shown that many workers suffer injuries while working in various businesses but go unreported and are compensated. Worker’s comp insurance is mandatory in Arkansas business entities employing seasonal or permanent workers. Companies are responsible for work-related injuries or sickness for employees working on their premises. They also qualify for missed wages and funeral benefits.

Protection from lawsuits

Lawsuits are recipes for bankruptcy for many business ventures. Any business is susceptible to impending expensive lawsuits. Workers’ comp insurance chips in and settles the lawsuit fees.

It protects business assets

Any business venture owns valuable assets within its premises. These assets ensure continuous productivity for the business enterprise at hand. Commercial insurance can cushion these business assets from any damages or risks.

Give Us A Call

Initiate a thriving business without worries of an impending peril in Northwest Arkansas! Please don’t hesitate to speak to our dedicated agents at Adams Insurance & Financial Sound and get more information about commercial insurance.

What commercial insurance is required in Arkansas?

When you own a business, you realize very quickly that you are surrounded by risks. Any one of these risks can be the demise of your business if you don’t have the financial ability to survive it. That is where commercial insurance comes in; it provides the protection you need against the risks that surround you. At Adams Insurance & Financial in Northwest Arkansas, we give our clients the tools they need to decide what type of commercial insurance they need to carry. We offer them a variety of carriers to choose from, which helps keep costs reasonable. 

Arkansas’ law requires that businesses carry two types of commercial insurance: workers’ compensation and commercial auto insurance. Any business that has three or more employees must protect them with workers’ compensation coverage which pays medical expenses and lost time for employees injured on the job. If your business owners any vehicles, they need to have the required amount of commercial auto insurance, which is 25/50/25 ($25,000 for one person in a vehicle accident, $50,000 for a total accident, and $25,000 for property damage). 

When you own a business, there are other types of commercial insurance that are a good idea to have to protect yourself. Almost every business can benefit from commercial property and liability coverage. Commercial property insurance protects not just a building but also all the things you need to do business. It covers machinery, tools, inventory, electronics, and office equipment, just to name a few things. Commercial liability protects your business from legal suits against you. It pays for a judgment if you are sued, and also for the legal fees associated with it. It is one of the most necessary types of commercial insurance. 

Contact Adams Insurance & Financial in Northwest Arkansas to get the insurance products and advice you need to protect your business. 

The Basics of Commercial Insurance

Owning your own business can be a wonderful way to make a living, particularly in Northwest Arkansas, an area home to some of the largest cities in the state. One aspect of owning a business is ensuring that your insurance policies provide adequate protection, and that is why it makes sense to speak to Adams Insurance & Financial about your options.

Commercial or business insurance is there to protect you from financial loss due to the unexpected. Most commercial insurances fall into one of two main categories. These are property insurance and liability insurance.

Liability insurance provides cover against legal liability. Depending on the type of business you own, there are the following options:

  • General liability insurance – suitable for any business.

  • Product liability insurance – suitable for businesses that wholesale or retail products, including manufacturing.

  • Professional liability insurance – this is for businesses that provide services.

  • Workers compensation – mandatory insurance for many Arkansas businesses with three or more employees falling under the liability category.

Property insurance is for insuring your property, including but not limited to buildings, inventory, and equipment. There are two main options.

  • Commercial property insurance – this is for large businesses with substantial physical assets.

  • Home-based business insurance – this is for businesses that run from home. Standard personal home insurance will not be sufficient.

Finally, there is an option called a business owner’s policy (BOP) and this combines several standard types of commercial insurance into one package, greatly benefitting small businesses.

The most basic tenet of any insurance is to purchase cover for what you cannot afford to pay for yourself. Protect yourself and your business and speak to Adams Insurance & Financial serving Northwest Arkansas about structuring your commercial insurance the right way for your business.

Common commercial insurance terms explained

When you are new to business or commercial insurance, you may have lots of questions. You may find some included terms confusing. Insurance companies use terms that may not be part of everyday language. Most people will need clarification of at least some insurance terms. At Adams Insurance & Financial in Northwest Arkansas, we are here to help our customers any way we can, whether answering questions or explaining terms. 

  • Actual cash value- This is the amount your property is actually worth today. A 10-year-old machine you use in your business is not worth the same amount when purchased. When you choose this type of coverage, depreciation is taken into account when you try to collect. 
  • Business interruption insurance- If your business suffers a covered peril, this insurance can provide the money your company needs to meet normal expenses while you cannot do business. 
  • Business owners’ policy (BOP)- A Business Owners’ Policy combines two of the most common commercial insurance coverage types, property and liability coverage. Usually, this combination will be less expensive than the two policies separately. 
  • Commercial Lines- These are insurance products that provide business coverage in the form of commercial auto, general and professional liability, workers compensation, and other coverage to protect your business.  
  • Replacement cost- Replacement cost is exactly what it sounds like. If something you need to do business with is damaged beyond repair, it will be replaced at the cost of replacement today, not the cost when it was purchased. 
  • Rider- This may also be referred to as an endorsement. It is an amendment or an alteration to your policy that provides additional or something not covered on the original policy. 
  • Workers Compensation Insurance– This is a commercial line of insurance that protects workers when they are injured while doing their job. 

Contact Adams Insurance & Financial in Northwest Arkansas for all your commercial insurance needs. 

Commercial Insurance Requirements in Arkansas

In 2018, Arkansas was home to more than 247,000 small businesses employing more than 400,000 people. Since 2018, those figures are estimated to have grown, with small businesses being a crucial part of Arkansas’ economy. Consequently, if you are a small business owner in Arkansas, you must have enough insurance to cover not only your business and assets but also your assets like company vehicles and property. 

When deciding between coverage options, it is essential always to have enough liability coverage to protect the entirety of your assets. Liability coverage helps pay for damage to a third party person or property. Additional examples of coverage offered under liability include advertising errors if accused of copyright infringement, reputational damage to help pay for defense against claims of slander or libel, and medical payments if someone is injured while at your place of work. 

Outside of several exceptions, the vast majority of small businesses in Arkansas are required to carry workers’ compensation insurance if they have three or more employees. Workers’ compensation insurance helps pay for medical bills and lost wages due to workplace injuries and illnesses. Additionally, any vehicle owned by the business must be covered under commercial auto insurance. 

When it comes to shopping for commercial insurance in Northwest Arkansas, look no further than Adams Insurance & Financial. Our friendly and knowledgeable team of insurance professionals know the industry like the back of their hands and are ready to customize a policy that perfectly fits your company’s needs. Give us a call today to schedule a no-obligation consultation to learn about how we can help protect your livelihood.

Servicing States

  • Arkansas
  • Oklahoma
  • Missouri
  • Texas
  • Tennessee
  • Georgia

Why Work With Us?

  • Locally owned and operated
  • Works with multiple carriers
  • Combines policies for best rates
  • Customer friendly services
  • Print out your auto ID cards from home, anytime!

Partner Carriers

  • All-State
  • Equipment International Insurance Company
  • Foremost
  • Hagerty
  • K&K Insurance
  • MiniCo
  • Nationwide Insurance
  • Progressive
  • Safeco
  • State Auto
  • The Hartford