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Why You Need Business Insurance

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					   Why You Need Business Insurance
You are an informed business owner, and may already have a policy in place. Do you have the right
coverage? Perhaps you are starting a new venture as a second career during these economic times. Are you
properly protecting your investment in the future?

The insurance industry landscape is changing. Property and Casualty Insurance costs are one of the most
expensive budget items for most businesses today. It is important to understand the type of coverage you need
and why. Finding the right insurance partner during these uncertain times could mean the difference between
a bright future or losing our life long dream.

The term ‘business insurance’ encompasses a variety of products that are needed by various businesses. There
is no generalized business insurance. The type of insurance you need is based on your personal circumstances,
just like with your car or home. You need to provide your insurance agent with detailed information about
your business so that they can help you decide what forms of business insurance you need.

With that said, every business requires insurance to cover against losses, even if those losses fall into a variety
of categories. Your insurance agent needs to know the basic information about your business. From the size of
your building to the type of work you do. These factors aid the underwriter (the person who writes the insur-
ance policy) to determine the type of business insurance you need and how much you will have to pay for it
(the premiums).

Let’s look at specific types of business insurance and why you may need to have them in place.


A Closer Look at the Different Types of Coverage



Property Insurance
This is insurance for the building and contents. This protects you from losses and claims on the building you
are in and all the contents. Whether you own or rent your space, you need to have property insurance. Most
landlords and leasing companies require that you have this type of insurance in order to rent the space from
them. This type of business insurance protects you from multiple perils (events) or single perils that could de-
stroy or damage your property (building and/or contents). For example, you could have an all perils policy or
a fire peril policy – with the fire peril policy, your property insurance only covers you if the damages and
losses were incurred because of fire.

Casualty Insurance
This is insurance for losses to the business. Most often, property and casualty insurance are put together in a
package for a business and is the most common business insurance that is needed.

Liability Insurance
This is insurance that protects you from liability charges that are legally imposed (being sued for negligence).
This is especially needed if you provide a service for people working on people (such as a doctor) where the
chances of you being sued for negligence are high.
 Why You Need Business Insurance
Commercial Auto Insurance
This is insurance for your business fleet of vehicles, which insures for damage to others, vehicles and
property. Your personal auto insurance doesn’t cover your business vehicles or any collision or accident
that you are in with your business vehicle. Commercial auto insurance is required for businesses that use
company vehicles and is based on similar information that you need for your personal vehicle. You will
have to provide the insurance agent with the names, driver’s license numbers and records of everyone who
will be driving the vehicles.

Workers Compensation Insurance
This is specific insurance for employee’s injuries on the job. This type of coverage is more important if
you run a business with a greater risk for injuries. You need this insurance to protect yourself if an
employee is hurt while working for you. Without workers compensation coverage you may be personally
responsible and have to pay out of pocket.

Business Interruption Insurance
This is insurance for losses to your business finances (cash flow, profit) that is caused by an interruption
where you can not run your business. Your property and casualty insurance will pay for the damage to
your building and your products, but if you make widgets and the widget making machine is damaged,
your income is halted as well. Property and casualty insurance will pay for your widget machine, but not
for your inability to make widgets until the machine is back up and running.

Health Insurance
This is insurance health benefits for your employee’s health needs. Most often you will charge your
employees part of the premiums in order to have health benefits.

Life and Disability Insurance
This type of insurance covers the death or disability of key employees in the company, such as a partner.
If your partner is disabled or killed, and the partnership is listed as the beneficiary on the policy (which in
this case is the most common), then the business will be able to continue on and thrive after the partner is
no longer able to contribute.

Scripted Policies
These are specialty insurance programs that are written specifically for a business or person. They insure
the unusual and the unique. It could very well be that your business is so unique to have need for coverage
that is a mixture of some of the coverage's listed above or something written specifically for your particular
risk. Actresses, actors, or athletes that have had legs insured at some point in their careers would be an ex-
ample of a scripted policy.

The design of your Insurance Program should be evaluated at three levels; Coverage, Service and Price.
One size does not fit all types of business. Just one uncovered loss could destroy your company. Please
call 678-475-6579 or visit our website for additional information at www.ozinsurance.com. Our agents
are waiting to speak with you.


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posted:3/19/2011
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