Why Business Insurance?
Owners of business are quite vulnerable to a wide range of perils such as litigation undertaken by a disgruntled customer, illness, injury and other types of unexpected losses. If you’re a business owner, it makes sense to do all you can to protect your company and the workers who depend upon it.
Good Business Insurance Coverage Options
It is important to keep in mind that simply being an LLC is not nearly enough to protect your business from loss. Being an LLC will only safeguard personal assets from whatever liabilities a business may encounter. Having good business insurance protects a business owner from a wide range of risks and losses a company can face every day. When an insurance company evaluates your risks prior to the provision of insuring a business, this is called “”underwriting.”” Understanding the risks is how one determines how to obtain the most appropriate coverage that will fullfill the needs of the company. For instance, if the company is in the business of selling alcoholic beverages or should some employees utilize personal vehicles to conduct operations, these are considered as risks when the underwriting is conducted.
There are many kinds of insurance types available to owners of business. Workers’ comp coverage, unemployment and state disability coverage are the three insurance coverage types that states will normally mandate that businesses obtain. In certain instances, depending on the industry, a state will regulate the kind of additional coverage a business must obtain that goes beyond the three normally required coverage types.
General liability coverage is the most common kind of plan due to the fact that it extends coverage for several kinds of risks like bodily injury, slander and libel, expenses arising from medical services, property damage, and more. In particular, doctors and other professionals (like those in the area of financial services), can benefit greatly from “errors and omissions” coverage that serves to safeguard these professional types from, for instance, malpractice lawsuits. Other types of coverage for businesses include product liability and commercial property protection.
Should the business be operated from the home, general liability or errors and omissions are important coverage choices since a standard homeowner insurance plan can sometimes fall far short in covering business losses. No matter if you operate a business from the home or from elsewhere, be sure to determine the kinds of risks your business may face and then look for the most appropriate policy to address your needs.
Another helpful protection is that of commercial auto coverage, which will safeguard your company vehicles from legal liability whenever there is a claim filed against your company seeking monetary compensation or should there be an accident while conducting business.
Just about all companies can benefit greatly from a good business insurance plan. An insurance professional is a key to assuring your needs are fulfilled by determining the most appropriate coverage to meet one’s needs, regardless of company size.