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Insurance For Small Businesses

Insurance For Small Businesses

By | 07.27.10
Insurance For Small Businesses

Business insurance policies are vital to helping you protect your assets and future growth from unexpected calamities. Without insurance, your business will not be protected from a natural disaster, the death of a partner or essential employee, theft, fire, or lawsuit, to name a few.

There are a wide range of different policies to protect business owners from nearly any business risk – even the most obscure. Take the time to investigate and assess your business liability needs with an insurance representative, industry association, and peers and weigh the cost of the premiums with the risk it covers – it could be the most vital decision to the survival of your business.

General Liability – One of the most common insurance policies, general liability, or umbrella liability insurance, protects your business against loss from the negligence of your business or its employees. With a general liability policy, business owners are protected against payments that are made as a result of bodily injury or damage, medical expenses, lawsuits, and settlement bonds or judgments required during an appeal procedure.

Product Liability – Product liability covers businesses in the event that the products they manufacture, wholesale, distribute, and/or retail cause personal injury or property damage. This type of coverage is also suitable for companies that offer services that may be capable of personal injury or property damage. In the event that a product or service has caused harm or damage, the business owner may considered liable for negligence, breach of an express or implied warranty, defective product, and defective warnings or instructions.

Property Insurance – Property is a must for any business owner who wants to protect the company’s assets. It is not required by law, but is a wise investment to insure against loss or damage in the event of a natural disaster or other unforeseen calamity. Business property insurance policies are varied and can be tailored to meet your business’s needs. Depending on what type of coverage you need, the policy can cover a variety of losses, including damage to fixtures, lighting systems, carpet, equipment, machinery, etc. due to a flood or fire, for example.

Home-Based Business Insurance – Home-based business owners generally need policies that cover business property, professional liability, loss of business data, crime and theft, disability, and personal and advertising injury.

Business Disability – Disability coverage protects business owners in the event that they cannot run or operate their business due to an injury or illness. This type of policy will replace income lost as the result of an illness or accident.

Key Person Insurance – Key person insurance is a policy that is taken out by a company on one of their employees and names the corporation as a beneficiary if the person dies or is disabled. This is a type of life insurance policy that pays a fixed amount of money to a beneficiary in the event that the person being covered dies.

Errors and Omission Insurance – Errors and omissions insurance protects you in the event that a client holds you responsible for errors, or the failure of your work to perform as promised in your contract. Coverage includes the cost of legal fees and will pay for any resulting judgments against you and court costs. Keep in mind, that most general liability policies do not provide coverage for errors.

Protecting your small business from risks should be the foundation upon which you build future growth. Talk with insurance representatives, colleagues, peers, and industry insiders to determine which policies are essential to your company’s survival.

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