Being a business owner is difficult enough, and then you have to find an insurance program that fits your specific needs. We know this can be confusing at times, but we are here to help. Here are 4 types of insurance protection most small business owners need to consider:
Property insurance – This type of coverage provides compensation if business property is damaged, stolen or lost. In addition to covering the physical business structure, property insurance covers personal property. This includes inventory, office furnishings, raw materials, computers, machinery and other items that are part of business operations. Property insurance coverage doesn’t end with protecting physical assets. It also affords operating funds when business owners are forced to take steps to get their business back on track following a major loss. Property insurance might provide coverage for broken equipment in some cases. It can also provide coverage for water damage, debris removal following a fire and several other specific items.
Commercial Auto insurance – Anyone who uses their own personal vehicle for business purposes should discuss this type of coverage with their agent. Most personal vehicle insurance policies don’t provide coverage if the automobile that is involved in an accident is used mostly for business purposes. Business Auto insurance policies afford coverage for vehicles that are owned and used by a business. Third parties injured by the policyholder’s vehicle receive compensation for damages up to the policy limit amount. Some policies might provide compensation for repair or replacement of vehicles that are damaged from flooding, theft, accidents and similar events.
Liability insurance – Any business can face a lawsuit at some point in today’s litigious society. For example, a person might claim that a business caused them harm from a service error, defective product or negligence in providing a safe environment. Liability coverage provides compensation for damages a company is liable for. However, the coverage is only provided up to the policy’s limit amounts. These policies usually also provide funds for legal defense expenses, attorneys’ fees, medical bills and several other related expenses.
Workers Compensation – In nearly every state, employers are required by law to have Workers Compensation coverage if they have employees, this number usually varies from three to five. Workers Compensation pays for a portion of lost wages for workers who are injured. In addition to this, it also covers the medical care they require. Coverage is provided to employees who are injured at work regardless of who is at fault. If workers die as a result of the injuries they sustain, the insurance company compensates the surviving family members of the deceased worker.