Types of business insurance
The first thing to understand about the scope and your business is the different types out there. Depending on your business, you may need certain types of insurance. In general, the coverage of a business can be divided into three large categories: coverage of income and property of an insurance business for owners or partners and key employees, and liability insurance. This is a different kind of analysis.
Insurance for business owners, partners and key employees
If you own a business, you will need specific coverage depending on how your business is set up. This includes, but is not limited to:
• Life Insurance – This cover protects your family in case something happens. This insurance is essential if you are the sole owner of your business, because the business owner is personally responsible for all debts of the company.
• Disability Insurance – Disability insurance provides income for a specified period if you are injured or ill.
• Partnership Insurance or Buy and Sell Compensation – If you have a business partner, this insurance will help you buy the partner’s stock and continue business in the event of death.
• Serious health insurance – If you become seriously ill, this coverage gives you a lump sum to overcome the situation.
• Person Insurance – This coverage protects you in the event of the death or loss of an employee that is most important to your business.
Insurance for business and real estate income
In addition to compensation that protects individuals, your business may also need the following types of insurance to protect its assets and profits. Remember, businesses that can no longer use your home may need coverage beyond your home insurance contract. It is always a good idea to contact your insurance company to discuss running a business from your own home.
• Property Insurance – This coverage covers all buildings or property owned by a business if damaged or destroyed as a result of fire, earthquake, avalanche and other similar disasters.
• Content Insurance – If you own real estate or buildings to store business items such as warehouses and stores, this policy will cover the loss of that content. Remember, even if you rent a space, you may still need home insurance, as your rental may hold you responsible for what you put in the rented space. Home business owners should contact their insurance company to discuss what to include in their home insurance.
• Business Disruption Insurance – In the event of a disaster, this policy covers a period in which business is not operating properly.
• Auto Insurance – If your business owns a vehicle, you are obligated to get compensation under the law. If you are using your car for business, check with your insurance company.
Liability covers you in case of an error or accident for which you may be liable. There are three types to consider when owning a business: personal liability, product liability, and professional liability. Each of these will cover you against personal liability and any lawsuits brought by customers in the event of a problem with the product.
Starting your own business is a big risk, but that doesn’t mean you have to take unnecessary risks. If you own a business, you need proper coverage. Shop, find the right insurance package for your business. If you have any questions, we will help you understand the policy and make sure you use it. The right kind of insurance company has the right kind of coverage.