The Ins and Outs of Business Insurance
Preview
Owners of business are quite vulnerable to a wide variety of potentially damaging risks such as litigation undertaken by a disgruntled customer, illness, injury and other kinds of unexpected losses. If you’re a business owner, you have certainly invested untold time, effort and money in creating and sustaining your business. It makes sense to do all you can to protect your investment.
Options for Business Insurance Coverage
It is important to note that simply being an LLC is not nearly enough to safeguard your business from losses. Being an LLC will only protect personal assets from whatever liabilities a business may face. Having good business insurance protects a business owner from a variety of risks and losses a company can encounter each and every day. It is highly suggested to speak with an insurance agent or broker to discover the kind of insurance that is most appropriate for your specific business operation.
There is a myriad of insurance types available to owners of business. Workers’ comp coverage, unemployment and state disability insurance are the three insurance coverage types that states will normally mandate that businesses carry. In certain cases, depending on the industry, a state will regulate the kind of additional coverage a business must have that goes beyond the aforementioned three required coverage types.
General liability coverage is arguably the most common kind of plan due to the fact that it extends coverage for several types of risks like bodily injury, slander and libel, costs arising from medical services, property damage, and so much more. In particular doctors and other professionals, like those in the area of financial services, can benefit greatly from what is known as “errors and omissions” coverage that serves to protect these professional types from, for example, malpractice lawsuits. Other kinds of coverage for businesses include product liability and commercial property protection.
Should a person operate a business from the home, he or she will need to carry general liability or errors and omissions coverage due to the simple fact that a standard homeowner insurance plan can sometimes fall tragically short when it comes to 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. To enable this to the best of one’s ability, it is highly recommended to seek help from an insurance professional to assist in successfully accomplishing such an important endeavor.
Conclusion
Pretty much all companies can benefit greatly from a good business insurance plan. It is wise for owners of businesses to delve headfirst into the process of determining what both the business and the owner’s individual needs and desires can best be fulfilled through this coverage protection. An insurance pro is a key to assuring these needs are fulfilled with the provision of the most appropriate coverage to meet one’s needs, regardless of company size.