Know Everything about Business Insurance
When you started your business, you probably dreamed of the freedom you would have doing
something every day that you love. However, you may find that running a business doing
something you love also brought with it other responsibilities, like finding business insurance.
When you find the right business insurance for your organization, though, you will see that it
brings you more peace of mind than the burden of responsibility.
When it comes to running your business and obtaining business insurance, you have a number of
options. Knowing that one type of business insurance does not fit all will enable you to open
your mind to finding the right business insurance for your company. Your first step in finding
business insurance is to do a quick assessment of your type of business, your financial situation,
and the laws in your area. These three things will help you determine what you need your
business insurance policy to accomplish.
The first type of business insurance that you may want to consider is business owner coverage.
This is an all-encompassing type of business insurance coverage that allows you protection in the
case of fire and other accidents. This type of business coverage also offers a minimal amount of
liability coverage, too. Also, you have another option in property insurance. This type of
business insurance coverage will enhance the property coverage included in your business owner
An important type of business insurance that you may want to consider is liability insurance. We
are in a society where people sue one another on whims, so liability insurance covers any
damage to property or injuries to another person for which you may be responsible. Product
liability insurance is another type of liability business insurance that protects you if your product
causes harm to a person.
If you run a service-based organization, product liability may not be an issue, but errors and
liability insurance is an important type of business insurance for your organization. This type of
business insurance protects you if you make an error or forget to do something that causes harm
to one of your clients. Also, you may want to consider business income insurance, which
provides a source of income to you should something happen that causes your business to cease
or limit operations. Finally, if any employee operates a vehicle for your business, you will want
to purchase business insurance for your automobiles.
If you are a sole proprietor or a partnership - both your business and personal liabilities are at
risk. Do you think you're safe if you incorporate or have an LLC? Many are misled into
believing this is so, however, you too can become personally liable if you sign a personal
guarantee on a loan, personally injure someone or act irresponsibility.
As you will see, owning business liability insurance can and does protects your business and
personal life from financial ruin. My discussion here will be limited to Business Interruption,
Overhead, Umbrella Liability and Liability Insurance - explaining what these four types of
insurance are, and what they can offer you and your business.
Business Interruption Insurance:
Business Interruption Insurance helps to insure against any economic losses that you may
encounter if something should happen to close down your business. For example, you have a fire
in your corner of the house - your business office. Your home is covered for property damage -
thus, the rebuilding is covered, however, what about the lose income you're losing while you
rebuild? That's where Business Interruption Insurance can come in to play.
There is one type of business insurance that you may want to consider when your business is
making a good profit, and that would be Overhead Insurance. Overhead Insurance covers rent,
salaries, utilities, insurance premiums and/or interest payments that are related to the business -
this type of insurance would cover you in case of a major illness or accident.
Umbrella Liability Insurance:
Umbrella Liability Insurance is used for catastrophic losses. This will protect you in the event
someone wants to sue you. An umbrella policy will upgrade your basic auto, homeowners or
business insurance to cover these unforeseen events.
If you have people coming to your home-based business, than liability insurance may be
something you should look into it. Liability insurance will cover you against claims made by
others against you for injuries or damages that occurred on your property. Yes, your
homeowner's policy includes some liability insurance, but it may not cover you for liability
claims caused by your business.
To conclude, life offers many unexpected turns in the road - and basically, that's what all
insurance does - it protects you against those unexpected bumps in the road - and keeps you
moving toward your goals with only limited stales. Personally, I believe I can deal with a small
bump in the road better than a complete halt in business. How about you?