Category: Business Insurance

By Nate Rodnay
Article Source: http://EzineArticles.com/6909188

In any business, risks cannot be ruled out. In case of a small business, even a small risk can make a huge impact on the growth and sustainability of the business. This is more so with respect to finances as small businesses, by their very nature, are devoid of strong financial support.

If you are a small business owner, you need to seriously consider taking business insurance to protect your businesses from unfortunate events that cause financial crisis.

Besides providing financial support during unfortunate events, insurance helps in increasing the credibility of your business among your employees (crucial part of your business) – they feel secured knowing that they are covered under insurance policy.

While choosing an insurance policy, assess and identify the risks that are likely to affect your business significantly. Common risks for any business include, damage to business property, life hazards to employees, and public law suits. None of these is a small liability that you can afford to overlook.

Basic types of business insurance policies:
There are different types of insurance policies covering different types of risks; you can either choose one policy or combine a few of them to make a consolidated policy that covers every risk your business might face. Here are some basic insurance policies that you can choose from:

Business liability: Your business is always at risk of facing law suits from third parties. There can be instances that make your business the subject of a lawsuit – a customer trips on a torn carpet in your office, a customer falls sick using your product, an electrical short-circuit that causes fire and damages your landlord’s building etc. These liabilities usually result in huge compensation claims. In such cases, having business liability insurance protects you against all these risks. Business liability insurance generally covers medical expenses and legal fees.

Property insurance: You don’t want to mess up with your business property. Do you? So, make sure that your business property is covered properly. Property insurance for your small business covers the fixtures, furniture, the inventory, and other physical assets of business. Property insurance protects the property against the damage, theft or loss.

Auto insurance: You need commercial auto insurance if you use a vehicle solely for your business. You should get a commercial insurance policy if your vehicle has commercial tags on it. Auto insurance covers risks of damage to the vehicle caused by an accident or vandalism. It also protects you from the third-party liability claims if your vehicle is involved in any accident.

Workers’ compensation: As an employer, it is your responsibility to take care of your employees at workplace. If any employee falls sick, gets injured or dies while working, as a business owner, you will be held accountable. You need to take care of his medical expenses. Here, workers’ compensation insurance helps you by covering the risk of injury to workers and the consequent medical expenses, etc.

Not buying insurance would put your business at greater risk. It is also not financially sensible to ignore the importance of insurance. Working out the right type and the correct amount of insurance coverage is quite difficult going by the variety of risks to your business.

Hence, approach a good insurance broker to get the right insurance coverage for your business.

InsureUS specializes in business insurance solutions. We offer a broad range of products to contractors and general business customers including public liability insurance. Call us today at 281-640-8888.

By Karen Johnson
Article Source: http://EzineArticles.com/expert/Karen_Johnson/2212166

 

No matter the size or nature of your business, one thing that remains the same is the need for business insurance. There are many different aspects of your business that you’ll want to take into consideration when looking for new business insurance – or reviewing your current insurance coverage. Since every business is different, each one will have different insurance requirements. For example, a company that produces physical goods may need different insurance than a company which offers services. In either scenario, there are some similarities, and listed here are a few types of insurance that all businesses should consider.

Workers’ Compensation Insurance – for your employees

Workers’ Comp insurance is required by law in almost every state. It can provide coverage for medical costs and a portion of lost wages for an employee who becomes injured or ill on the job. Typically, this type of insurance only covers injuries or illness that occur on the job site – for example, if an employee slips and falls on a wet floor.

Since the laws regarding Workers’ Comp can be different depending on where your company is located, it’s important to work with an insurance professional to make sure you’re getting the coverage that’s required, as well as what you need for your particular business.

General Liability Insurance

General Liability Insurance is designed to protect you and your business from a variety of claims, including accidents, injuries, or claims of negligence. This type of insurance can help pay for things like property damage, medical expenses, libel, slander, legal costs, and faulty products. No one expects to get sued, but the reality is that it’s always a possibility. You don’t want to leave your business open to these types of situations, and the broader the protection, the better.

Professional Liability Insurance – “Errors and Omissions” coverage

Professional Liability Insurance can also be known as “Errors and Omissions Insurance,” or “Malpractice Insurance.” It protects you from lawsuits that allege negligence in providing professional services, providing shoddy work, or making mistakes or omissions. This type of insurance is particularly important if you have a service-based business, but can also be necessary for other types of businesses as well. Mistakes happen – so adequate Professional Liability Insurance can be helpful, even if you don’t think you’ll need it.

Property Insurance

The definition of “property” is broad, and can mean different things to different types of businesses. That’s why it’s important to make sure you carry adequate Commercial Property Insurance. Without this type of insurance, most small businesses wouldn’t be able to replace their equipment should something happen to cause damage or destruction. Property covered by this type of insurance can include buildings, computers, inventory, supplies and equipment. There are two types of Property Insurance: “all-risk” policies cover just about everything, and is a good way to avoid duplication or overlap of coverage, as well as gaps in trying to cover your liabilities. “Peril-specific” policies, or “named-peril” coverage applies only to particular perils that are specifically named in the policy. They’re usually needed when there is a high risk in a very particular area.

Life Insurance / Key Executive Insurance – protection and benefit

Offering life insurance for employees can be a valuable benefit when trying to attract high-quality employees. A business can even offer additional coverage for executives. These employees are deemed to be crucial to the running and success of the business, and may sometimes require additional insurance, above and beyond what the normal employee benefits provide. This can be another benefit in attracting top talent.

A business can also offer special “Key Person” policies for employees without whom the business could not function. Key Person Insurance protects against a key employee’s unexpected death – often times the benefit amount equals the expected revenue loss and costs required to find and train a suitable replacement. The business pays the premiums, and the insurance is considered a business asset.

It’s possible to combine some of these basic coverages as a package policy, often referred to as a Business Owner’s Policy, or BOP. Many insurance companies bundle certain coverages, and this can save you money, as long as you make sure you get the proper type of coverage.

Even if you feel you have adequate business insurance coverage that meets all your current needs, it’s still advisable to review all your coverage on an annual basis, to make sure that your coverage continues to provide everything that you need. This is particularly important if you or your business have experienced any major changes, such as change in family status, or a significant increase or decrease in business activity. Additionally, be sure to work with a reputable, licensed insurance agent or broker, who has knowledge regarding business like yours.