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Business Insurance Guide

What can a business owner do to protect his business with which he has invested a lot of time, money and effort? He can get insurance to protect his properties from destruction or loss and to help defend the business from liabilities as a result of its operation.

Find out the basics of insuring a business.

You have put up a business and invested significant amount of time, energy and money into it. You might have given up regular employment to start a business of your own. Starting wasn’t easy especially because money was tight and you have to tap all your savings and approach family and friends for financing. Naturally, you would not want anything to happen to your business or profession that would cost you unnecessary expense or worse, the loss of your property or license.

If you are in the service industry as a doctor or a lawyer for example, you are careful that you act in the most professional manner to keep a good reputation and avoid facing complaints from clients. If you own a store, you would install security gadgets like alarms to ensure nobody breaks in to steal goods and equipment. But what if despite all your precautions, someone might claim that he suffered financially because of omissions or negligence on your part as a financial advisor, for example. Or an employee accuses you of breach of contract. What if a supplier fell off the stairs on his way to delivering goods you ordered? Or a fire broke in a building where you have an office and all your machines got burned?

In all these cases, you need protection to cover the expenses of defending yourself against a lawsuit for negligence or malpractice, to hospitalize someone injured in your business premises or of an employee who met an accident at work, to pay for the purchase of new machines and equipment that was lost to theft or damaged, or to repair your building that has been destroyed by a disaster. You could save money for this, but better yet, you can purchase insurance to cover every aspect of risk that your business may face.

Several types of business insurance are available and your choice should depend on the manner you operate your business. Are you operating from home? Insuring a home business will also come necessary even if you already own a home insurance. Are you operating a farm business? Read some farm insurance guide to help you understand the special considerations to protect what may be a family legacy. Aside from businesses, special structures like churches also need insurance. Insuring a church against risk doesn’t differ much from insuring a regular business.

Business Property Insurance – covers properties from loss or damage by common means such as natural occurrences and theft. Coverage for certain disasters like terrorism or earthquake are also available. And so are for specific risks – business interruption insurance may be obtained to insure recovery of income in case operation of a business is disrupted.

Liability Insurance – basic liability insurance covers for damages done to third parties and their properties as a result of negligence, omissions or errors done by the business. Professional liability insurance for the service industry and product liability insurance for manufacturers are specific types of liability insurance.

Insurance and Benefits for Employees - workers compensation insurance is mandated by most states to ensure employees injured by accidents at work are properly compensated. Some employers may elect to provide life and disability insurance, particularly to key employees to help the business tide over a transition in case the key employee is no longer able to contribute to the business due to death or disability. Health insurance for employees is another benefit a business could provide to workers.

Commercial Auto Insurance – this is necessary for a business that uses vehicle or vehicles in its operation. Most often, a personal insurance for a vehicle isn’t enough to protect you from risks in case the vehicle met an accident.

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1 Comment

  • Junaid said on July 6, 2013
    Dear Sir, Can you please guide me the points to be noted for insuring the Medical equipment of a hospital or costly mobile phones or life insurance for hospital owners and employees. Junaid

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