Business Insurance–The Different Policy Types Your Business Deserves

March 25, 2009 by  
Filed under Business & Employment Insurance

Business insurance is a broad concept that can be subdivided into 9 types of policies. To know which one best fits your business, you have to be aware of the coverage of each type of business insurance. Below is a short rundown of the types of business insurance as well as some information on the things they cover.

Property Insurance

The location and contents of the business are the main interests insured by property business insurance. This can include even the properties owned by other people but are in your control and possession. Thus, the property insured may be owned, rented or leased. More specifically, it may be pointed at a particular risk. For instance, fire and tornado insurance policies insures against fire and tornado losses, respectively. There are insurers who combine property and casualty insurance. This type of business insurance is usually the best business move a businessman can make.

Liability Insurance

This type of business insurance takes care of liabilities arising from the business due to employees’ negligence. In other words, it insures your business against torts and damages.

Commercial Auto

The vehicles covered by your personal automobile policies do not include the vehicles you use for your business. Thus, commercial automobile coverage comes in to insure you against damage done to your business vehicle or to others’. This is something that you need especially in states where business vehicles are required to be titled.

Workers Compensation

You are responsible for the on-the-job injuries sustained by your employees. That is the main reason why you need to insure them. Most states have a system of worker’s compensation in place wherein employees will not sue their employers if an on-the-job injury happens. Instead, the latter must participate in an automatic payment system to the employee for medical treatment and damages due to injuries. Meanwhile, there are also states that give employers the option to opt-out of the workers compensation system provided they self-insure their business with private insurers or other state agencies.

Business Interruption

Loss or damage to the business’ cash flow and profit due to business interruptions is what is being insured against by business interruption insurance. This peril usually occurs when the business is unable to operate. A very simple example of this is when essential machinery is struck by lightning. The repairs may also be covered by property or casualty insurance. You need this coverage to so you can get replacement of your income even after 3 months.

Health Insurance

Businesses, in order to be competitive in hiring the best employees, need to offer health insurance. This is one of the many benefits that workers are looking for in prospective employers. This type of business insurance can even include you.

Life and Disability Insurance

Key employees are very valuable to the company that the latter would even go through great lengths to insure them against death or disability. For instance, the company may take a business insurance policy on the life of one of its partners with the company itself as the beneficiary. Upon the untimely death of the insured partner, the proceeds of the policy can be used by the company to take control of the deceased partner’s interests.

Nowadays, it is very easy to do a comparison of all the business insurance available through online business insurance quotes. A person who has worked hard for his business to grow will never go wrong with getting a business insurance for it since it definitely pays to be protected in times of uncertainties.