Primer on Business Insurance

successYour new business will face risks and insurance coverage is available to protect your investment. Insurance carriers differ in types of policies offered, costs and limitations, so I recommend discussing your exact firm’s needs with a qualified insurance broker-agent.  They will analyze your company and direct you to the insurance policies you should purchase for maximum protection that meets your budget.

Types of Insurance for Businesses

 

General Liability

Covers your firm from lawsuits regarding injuries on the jobs, negligence and accidents. Payments for damaged property, medical, libel and slander and cost of attorneys for defending your business.

 

Product Liability

 

If your business manufactures, wholesales or distributes physical products you are responsible for your customer’s safety while using your products.  You are protected against a defective product that causes harm or injuries.  Purchase enough to cover the costs of your products exposure.

 

Professional Liability

Also called Errors and Omissions insurance.  Coverage for claims of malpractice, errors and general negligence in services you sell customers.  Some states require this insurance for certain types of businesses and professions, such as physicians and other practices.

 

Commercial Property Insurance

Loss and damage of property your company owns due to all sorts of events such as wind, hail, vandalism and fires. Be sure that your policy is generous in its definition of “property” to include income lost due to plant closures, technology computers, files and cash.

 

 

Home-Based Business

No, your homeowner’s policy does not cover your home-based business in case of loss.  Add to your homeowner’s policy or buy a separate policy for the risk to your business in addition to the required professional liability required by your state.

 

 

 

 

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