Business Insurance
From LoveToKnow Insurance
If you are a business owner, you need to understand the importance of business insurance and how it can impact your enterprise. It is also important to note that certain types of business coverage may be compulsory by law.
Business Insurance Basics
Liability insurance is the mainstay of any business insurance package. Employer’s liability insurance can protect your business if your employee suffers as a direct result of your company’s actions. If an employee is injured on the job, this type of insurance will allow for the employee to be adequately compensated and cared for without incurring excessive legal fees.
Product liability insurance is another insurance staple for any business. If a consumer is harmed by your company’s product, liability insurance will ensure that potential legal fees and damages will be covered.
Health insurance for employees and disability insurance are also important for businesses to contract. Health, dental, and disability insurance usually need to be negotiated separately from a basic business insurance policy.
You may also want to consider employee and corporate officer or owner life insurance as a part of your coverage. When key personnel in a company die, it can create an expensive undertaking to replace him or her.
Business Owner’s Policy
A business owner’s policy is a common type of business insurance for small and medium-sized companies. A business owner’s policy covers property insurance (for your company’s property and contents), business interruption insurance (this will cover loss of revenue if your business is disrupted) and general liability. This combined form of business insurance can save smaller businesses a significant amount of money. However, employee’s health insurance, disability insurance and vehicular insurance (if required) must be contracted under a separate policy.
Other Types of Business Insurance
Beyond the basics, there are several types of specialty policies that may be purchased. For example, professional liability insurance will cover your agency in the event a client suffers due to insufficient training or negligence on the part of your employees. Professional liability insurance may also be called errors and omission insurance.
Employee Practices Liability Insurance is another type of insurance that your agency may require. EPLI covers lawsuits resulting from company practice such as sexual discrimination, wrongful termination and misappropriation of employee benefits
If you own and operate a vehicle for business purposes, it may be wise to purchase a commercial auto insurance policy. This kind of insurance policy will cover damages to your vehicle whether driven by yourself or your employees. It is important to distinguish your commercial auto insurance policy from your personal policy by making sure that the name of your business (not your own name) appears as the principle insured.
Choosing the Right Insurance
Working closely with a reputable insurance company will go a long way towards getting you the best business insurance package. One indicator of a financially stable insurance agency is their standing with ratings companies such as Standard and Poor’s and A.M Best. It may be a good idea to spend some time researching ratings companies and consumer magazines before making a final decision.
Working with a qualified agent or insurance broker can also help you to choose the right policy. An insurance agent can also help you reduce the cost of business coverage. An agent can suggest ways to prevent losses that will result in lesser premiums such as instituting workplace safety programs and other management initiatives.
Related Insurance Links
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