 |
Business Insurance Coverage You Need
by Gannon Pierpont
http://www.fproinsurance.com
If you own a small business, the Small Business
Administration has some advice for you regarding business
insurance. One of the most important investments you can
make when planning your budget is adequate insurance. If
you're just starting out and haven't yet planned for your
insurance needs, the SBA recommends that you carry the
following kinds of insurance the see you through bumps in
the business road.
At the very least, according the the SBA, your business
should be insured against property damage, personal injury
and business losses due to catastrophic events.
Most Important Of All: Property Insurance Property insurance
is like homeowners' insurance for your business. It will
insure the physical assets of your business against loss in
the event of catastrophic events like fire. The SBA
recommends that you check your policy carefully to be
certain that the most likely events that will cause damage
are covered. In many states, for instance, it's common to
exclude floods from standard property insurance. You'll need
a specific rider to cover that.
If your business owns vehicles, or uses a vehicle for
transporting or delivering goods or services, you also
should have business auto insurance. If you use a personal
vehicle (or employ others who do) that vehicle should be
covered under a business rider in addition to the regular
auto insurance that is required by your state. If it is
involved in an accident while being used for business
purposes, your personal auto insurance coverage may not
cover the damages.
Special Coverage for Equipment or Liabilities If your
business depends on specialized equipment, including
computers, you should insure them under separate coverage.
In many cases, your property insurance for the business will
only have limited coverage for technical equipment.
Insure Against Financial Loss Business income insurance will
reimburse you if an unexpected catastrophe like a fire
causes you to close your doors temporarily. Based on
estimated earnings for that period, it can help you pay your
bills and expenses even while you are unable to do business
normally. If your business is a seasonal one, you might
consider peak season coverage in case a fire or accident
causes you to close your doors during your busiest time of
the year.
Many insurance companies offer package policies for small
business owners that combine all needed insurance under one
umbrella - a Business Owners' Policy. Usually, the premium
on a business owners' policy will be substantially less than
you'd pay if you purchased each coverage separately. Your
insurance agent can help you tailor a plan that takes all
your business needs into account. He can even add specialty
coverage to a standard umbrella policy at a discount if you
combine everything into one plan.
In addition to insurance that protects your business in case
of catastrophe, if you employ others to work for your
business most states require that you carry workers'
compensation insurance to cover their medical expenses if
they are injured in the course of carrying out their work
duties or on work premises. While this protects your
workers, it also protects your business and you from being
held personally liable for medical expenses in that case.
You should also check your state's laws regarding health
insurance, not only for your workers but for yourself. Each
state has different laws regulating what insurance must be
provided for what size business, but in some states, it
works to your benefit if you are a self employed owner of a
business with one employee - yourself. In Maine and several
other states, certain insurance plans must be offered to you
at group rates even if you are the ONLY employee of your
business.
If your business has unique needs, you should consult an
insurance agent who is experienced in writing policies for
other businesses that share your field. Businesses such as
barber shops, restaurants and professional offices all have
unique needs that require specialized knowledge of the
protections that might be required in that field.
Submit An Article
|
|
|
