Date: October 17, 2008
For more information contact: Jim Guidry, (608) 264-6239 or jim.guidry@wisconsin.gov

Resource for Wisconsin's Small Business Owners

Madison, WI—Starting a new business is exciting. At the same time, small business owners need to understand the array of business risks they face. Determining the proper insurance coverage to protect themselves is an important decision.

"Understanding the different types of business insurance policies can be overwhelming," Sean Dilweg, Commissioner of Insurance said. "Yet the more you know, the better prepared you are to 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 encouraged to visit OCI's small employer Web site. Included on the Web site is information about:

Health insurance. Providing health insurance for employees is by far the single most expensive benefit offered by employers and is one of the greatest challenges many small businesses face. As small business owners know, health insurance is extremely important to most employees and is therefore a very powerful benefit in recruiting and retaining good employees. Small employer health insurance is available in Wisconsin from a significant number of insurers and managed care plans.

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 for worker's compensation coverage. Worker's compensation insurance covers reasonable and necessary medical costs and disability income benefits for employees with job-related injuries and death benefits to dependents of employees 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 negligently 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.

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 in 2006 to improve financial literacy in Wisconsin. The third-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.