What is business insurance?
FAQ for the Small Business Person
Types of Business Insurance:
What is Liability Insurance?
LIABILITY INSURANCE
This is the crucial element of your insurance program. Liability insurance protects from potential losses resulting from injury or damage to others or their property. One only has to look at recent judgments resulting from liability lawsuits. Having the proper insurance can been the difference between bankruptcy and continuing in business. An insurance agent can best describe the different levels and types of insurance policies available. Interview several agents before choosing one to serve you. See here for a checklist for your insurance plan.
KEY PERSON INSURANCE
This type of insurance is important for sole proprietorship or partnership where the loss of one person through illness, accident, or death may render the business inoperative or severely limit its operations. This insurance, although not inexpensive, can provide protection for this situation. Key person insurance might also be necessary for others involved in your business.
If a business relies on highly skilled individuals, Key Person Insurance may protect against the cost to bring another person up to productivity.
What is business building insurance?
Two of the most popular types of commercial building insurance are called "named-peril" and "all-risk" policies. A named-peril policy covers property in the event of any specific hazards specifically mentioned in the contract. For instance, a named-peril policy might mention fire and explosions, while excluding floods and earthquakes.
An all-risk policy is the opposite, covering every kind of hazard except for those specifically mentioned in the policy. Most small-business owners find that all-risk commercial building insurance is more than adequate for their coverage needs.
What is the price or cost of business insurance?
The short answer is prices vary. Depending on what coverage you require the price will vary. Solicit the advice of an independent business insurance agent. You must shop for this agent. Don't forget to SHOP! Talk to three or four independent agents and compare the notes and prices from previous interviews.
The Agent should be able to lay out a large selection of insurance coverage, much of this you may not need. Your situation will be unique and you must consider each insurance element carefully to ensure comprehensive coverage.
In some cases a $2 million policy costs only slightly more than a $1 million policy. This economy of scale is true with most forms of insurance coverage.
How much is the price or cost or price of Business Renter's Insurance?
Make sure your policy only includes items you need, examine your comprehensive general policy, to make certain. For example, your business may not need product liability insurance.
Check with your agent regarding your personal liability coverage, you need it in addition to business liability insurance. Your personal coverage might not cover a business liability. Get involved with your agent and be certain.
Compare the costs at different levels of coverage. An economy of scale occurs at certain levels. Run different scenarios by your agent.
LINKS & RESOURCES:
Articles
SUGGESTIONS:
Whatever your insurance plan, review it every six months. Business changes rapidly and insurance needs change with it. Hold regular plan reviews with your agent and make changes where necessary.
