Date: October 5, 2006
For more information contact: Eileen Mallow, Assistant Deputy Commissioner, (608) 266-7843 or eileen.mallow@wisconsin.gov

Resource for Wisconsin's Small Business Owners

Madison, WI—Starting a new business can be very confusing as well as exciting. Success in business hinges on a number of factors, but having the appropriate insurance coverage can be a crucial element, especially for small businesses. Without insurance protection, your business could face financial ruin either because of a property loss or due to a lawsuit.

"Educating yourself about the different types of insurance policies can be overwhelming," Jorge Gomez, Commissioner of Insurance said. "Yet the more you know the better prepared you are to ask the right questions and make the right choices.

In order to help small business owners in their search for insurance the Office of the Commissioner of Insurance (OCI) created a Web site that discusses some of the insurance coverages they need to consider for their business. Some types of coverage are required by law; others simply make good business sense.

During Money Smart Week^SM Wisconsin small business owners are encourged to visit OCI's small employer Web site. Included on the Web site is information about:

Worker's compensation insurance. All employers in Wisconsin, with some very limited exceptions, are statutorily required to have worker's compensation insurance or be licensed to self-insure. Worker's compensation insurance covers reasonable and necessary medical costs, disability income benefits and death benefits to dependents of an employee whose death is job related. There are over 300 insurance companies licensed to write worker's compensation insurance in Wisconsin.

Property and liability insurance. Property insurance protects the contents of your business against fire, theft and other perils. Liability insurance protects your assets in the event you or your employees are negligent, cause bodily injury or property damage to another. Many insurance companies have packaged property and liability coverage into what is commonly called a business owner's policy (BOP). It allows small business owners to obtain broad coverage with affordable premiums.

Auto insurance. Whether your business owns one car or a fleet of vehicles, automobile insurance protects your business for damage caused to other people or property by your vehicle, as well as damage to your own vehicle.

Health insurance. There are no state or federal laws that require businesses to offer health insurance to employees. However, many small business owners offer health benefits to their employees in order to attract and keep good employees. Small employer health insurance is available in Wisconsin from several insurers and managed care plans.

The Web page includes consumer buying tips, consumer publications for small employers, a glossary of insurance terms and commonly used acronyms. Also included are links to Web sites that assist business owners in making important decisions about various insurance issues. The small employer Web page can be found at oci.wi.gov/smempins.htm.

Publications such as Consumer's Guide to Insurance for Small Business Owners, Consumer's Guide to Worker's Compensation Insurance for Employers, Consumer's Guide to Commercial Liability Insurance and Health Insurance for Small Employers and Their Employees can be ordered free from the agency by writing to OCI Publications, P.O. Box 7873, Madison, WI 53707-7873, calling 800-236-8517 or visiting the OCI Web site at oci.wi.gov.

Money Smart Week^SM Wisconsin was created by the Governor's Council on Financial Literacy which Governor Jim Doyle formed last year to improve financial literacy in Wisconsin. The first-year campaign is modeled after similar promotions run by the Federal Reserve Bank of Chicago in the cities of Chicago and Detroit. It is envisioned as ongoing from year to year. Wisconsin's initiative has the support of the Federal Reserve Banks of both Chicago and Minneapolis.

Created by the Legislature in 1871, Wisconsin's Office of the Commissioner of Insurance (OCI) was vested with broad powers to ensure that the insurance industry responsibly and adequately met the insurance needs of Wisconsin citizens. Today, OCI's mission is to lead the way in informing and protecting the public and responding to its insurance needs.