|
General Guide to Small Business Insurance
Unfortunately, some small businesses ignore the importance and necessity of insurance until after a major loss has occurred. A sound insurance plan protects you and your business by shifting the risks and by reducing the uncertainties of your business.
It is advisable to have one agent who represents numerous companies handle all the insurance needs of your business. The agent will be familiar with your business situation and be able to recommend alternative plans when purchasing and updating insurance. Package deals, which combine several overages in one policy, are available to business owners by most insurance companies. Your insurance plan, however, should be tailored to fit the needs of your business. A good insurance agent can be very helpful to you in selecting an appropriate insurance plan.
Several major factors that should be considered when choosing an insurance plan include: identifying the risks, determining the amount of loss that can be suffered from each risk, obtaining coverage for the largest potential loss first, and avoiding duplicate coverage.
Small Business Insurance
TYPES OF INSURANCE
There are a variety of coverages available from different companies, with different premiums and deductibles. There are, however, four major types of property/casualty coverage that are considered to be essential for most businesses: general liability, property, workers' compensation, and automobile.
Liability Insurance
Liability insurance may be one of the most important types of insurance for a business. It protects your business from financial loss due to bodily injury or property damage caused by negligence of business operations (which may include acts of the owner, acts of the employees on the job, business conditions, or products of the business). In some cases, businesses may be subject to damage claims even when "reasonable care" was used. A few examples of liability coverages available include the following: products and completed operations liability, commercial general liability, personal injury (which includes libel and slander), professional liability, employment practices liability and pollution liability.
|
