When you start a business, one of the most important decisions you will make is choosing the correct kind of business insurance to cover your business. A policy can be purchased from an insurance company either online or at your local branch. If you plan to do most of the business yourself, you may decide to get a policy that only covers physical assets such as property, equipment, and supplies. However, if you employ more than one person in your business, you may want a policy that provides for liability, workers compensation and other employee benefits. There are many different types of business insurance available, so it is imperative that you understand exactly what you are buying before you buy it.
It is likely that you will encounter situations where you may need both liability and physical protection for your business. For example, if you have employees that perform contract work on your behalf and that is their only job, you will need liability protection. On the other hand, if you hire repairmen on a regular basis to work on or fix your business property, you may need to purchase physical damage coverage.
One policy that can protect your business assets is called an Employer’s Liability Coverage Policy. This will cover any injuries that are sustained by employees who are directly employed by your business. Additionally, it covers legal costs incurred by an employee that is injured while on the business property. The good news is that this type of coverage is often times the least expensive option and the policy do not require a physical examination to determine the likelihood of an accident occurring. If you work with a reputable company, they will conduct a physical exam prior to approving coverage.
Another type of coverage you should consider purchasing for your business is Employer’s Property Insurance. This will protect your business against liabilities for property damages that occur on your business premises as well as from liability claims by other businesses that damage your property. Usually, this coverage will also cover any personal injury claims that occur on your business property. In addition, this type of coverage will protect your business against lawsuits that arise out of any injury or damage to your business property.
Business Owners Property Policy is a little different than the Employers’ Liability Policy in that the business owner typically is named in the lawsuit. However, this differs from state to state. Many business insurance agents recommend that you purchase Business Owners’ Property Insurance to cover you against any liability claims that could occur under the employment policies you have in place. For example, if you own a business that provides carpet cleaning services, an employee may sue you for medical bills if they are injured while on your property. Your Business Owners’ Property Insurance will protect you from such damages.
The final type of protection that you should consider for your business is a Business Loss Coverage. This will cover the financial losses that occur due to your business failing, such as a store going out of business or a restaurant having a bad week. If you own a manufacturing business and your business fails, you may be able to protect yourself by obtaining this type of coverage. With a Business Loss Coverage policy, you will have coverage to replace your inventory, office furniture, supplies, and machinery. It is important to note, however, that depending on the state laws, you may need to obtain separate insurance coverage for these particular items.