Business Insurance Buyer's Guide

Every business carries an element of risk, be it theft or work-related injuries and therefore needs to be protected with insurance. Businesses, small or large, are vulnerable to consequences of such incidents and require adequate protection. Business insurance can protect your business against losses. Depending on the state you live in, your state insurance department will have certain insurance requirements that you need to fulfill. They may include property insurance, worker’s compensation, general liability, and umbrella insurance. Depending on these factors, you can decide on the type of insurance coverage you require.

Things You Need to Know

You ought to understand your state, local, and federal laws for businesses when you need to buy business insurance. Prior to launching your business operations, it is recommended that you contact a commercial insurance broker who will be in a better position to determine what insurance regulations you need to fulfill. You will also get to know the type of insurance you require and the kind of protection available. If your business is considered high risk, an attorney who specializes in insurance law will be able to determine the coverage you require. Upon hiring any employees, you need to carry workers compensation insurance immediately. For detailed information on these issues, you may visit your state’s department of commerce website.

Vehicle insurance is also essential to cover employees that may be injured while at work. All vehicles, which include trucks, cars, vans, etc. need to be insured for third party liability. You need to furnish the details of every employee that uses these vehicles for business purposes, the nature of business, and how it is to be used. All their licenses should also be in order...

Types of Business Insurance

Most types of business insurance cover every possible need including healthcare and other benefits that might be passed on to your employees.

Property Insurance - This type of business insurance covers loss or damage to business property due to theft, fire, natural disasters, and vandalism. For all practical purposes, you ought to cover your building and all its content, stock, and fixtures. Computers and communication equipment are often not included as they are considered special property, so check with your insurance provider in advance. In case you rent a property, you can review the landlord’s insurance policy for the level of protection.

Public Liability Insurance - In the event of anyone suing you for negligence, liability insurance will cover any legal costs that may arise. This is essential if you have a large number of non-employees visiting your premises as well. The insurance cost varies according to the size of your premises and the products you sell.

Product Liability - Any claims that arise from faulty products manufactured, sold, or installed by your company can be covered by product liability insurance.

Professional Liability - All professional in the field of management, computer consulting, medicine, law, accounting, and financial services need to be covered by professional liability insurance, also known as malpractice insurance. Coverage includes a variety of issues including breach of confidentiality, loss of documents, breach of professional duty, and breach of copyright, and more.

Life and Disability Insurance - Life and Disability Insurance will protect your business against death or disability that may befall any employee. In the event of disability, a percentage of the salary is paid during the period of incapacity. After a deferred period, the policyholder receives tax-free benefits until retirement, recovery, or death. In case of death of a partner in a partnership business, the policy can be used to buy out the shares held by the deceased partner.

Business Income/Extra Expense - Any extra costs or revenue lost due to disruption such as fire can be covered by this type of insurance. Any damages to your office can be claimed as extra expenses. It includes temporary offices, removal expenses, and increased rentals.

Key Man - Key employees of your organization ought to be covered by this type of insurance. This can include top level management, business partners, and other personnel. This will cover loss due to death, and incapacity also. This will not only help your main employees resume work as soon as possible, but also keep them motivated since they will have a sense of belonging to the company.

Other policies include computer and engineering systems, which covers breakdowns and other related factors, and directors and officers insurance that protects directors and officers who may be sued personally over any business matters.

Choosing Your Insurer

You can engage the services of a business insurance broker or agent. An agent normally acts on behalf of a particular insurance company, and can provide you with comprehensive details and packages only that particular company. An insurance broker on the other hand can negotiate with various insurance companies in order to get the best possible coverage at the best possible price. You can save your time and money by comparing business insurance quotes online.

To begin with speak to an insurance agent or broker, and seek help from your local Chamber of Commerce. The agent or broker must be experienced enough in business insurance. After all, you would want the best deal that suits your needs.

Issues You Need to Avoid

The idea is to research well and make sure you do not underinsure your business. This will be detrimental in case of any mishaps, thefts, damages, and lawsuits that may be filed against your business. Failure to obtain the right kind of coverage can be disastrous, so make sure the stock, plant and machinery etc. are all protected with the right coverage. Make sure that any deductibles in your policy are appropriate; otherwise, you will end up paying higher premiums.

Some Money Saving Business Insurance Tips

- Make your insurance objectives clear and provide accurate information to your insurance representative.

- Obtain bids from insurance brokers and insurance agents as well.

- Compare quotes with various insurance companies online.

- Make sure that there is no duplication or overlapping of policies, which will only result in you paying extra premiums for no reason.

- Insurance is a business too, so make sure your insurance company is an "admitted insurance company". In this way, you will be protected in case the company turns insolvent.

- Make an annual assessment of your insurance needs, so that you remain covered in spite of business growth.

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Business Insurance Quotes - Coverage for Your Business

Building a business is laborious task, but fun at the same time. You will be always looking forward on how things will work out. You will have the feeling of contentment as you watch your little creation grow into a full swing and productive establishment. However, there are things that should be taken into consideration like accidents and liabilities. One accident or disaster could wipe the whole thing that you have worked for over the past years. For this reasons that is why there is business insurance. This type of insurance can help you cope up with any losses that your company may incur. Here are some of the insurance policies that you can use in your business to aid you in most of the risks that you may come across.

Types of Business Insurance Policies

One example of a policy in this form of insurance is the property and casualty insurance. This policy provides protection in most risks involved in a property such as theft, fire and weather damages. It also protects the owner‘s property from being taken as a compensation for others in settling legal disputes. The casualty insurance resembles a different form of coverage known as liability insurance, but a bit more restrictive.

The definition of liability is the financial or legal responsibility the owner of the business has to another person. In the general liability insurance, the policy covers claims for the insured’s liability for injury or damage resulting from manufacturing operations, sale distribution of products, operation of machinery, ownership of property, contracting operations or professional services. This helps protect your business from a broad number of liabilities. As an example, this will cover for the accidents from the operations or premises of an insured individual.

Here is another insurance policy that you can also use in your business. This is the worker’s compensation insurance. The worker’s compensation is a system established under the state law providing payments to an injured employee during his or her employment, no matter whose fault it is. Because of this, you have the responsibility to compensate for the losses of your employees during their terms of employment. The policy covers liability enforced on certain employees that were killed, injured, or acquired sickness due to his or her job. In other words, the insurance will provide the benefits to your employee or to the people dependent to him or her.

On the other hand, the professional liability insurance protects professional practitioners like doctors, architects and physicians against claims on negligence from their clients. This kind of insurance may come in different names depending on what is the job description of the professional. As an example, in medicine, the policy is known as medical malpractice insurance. If your business employs professionals, this would be helpful in cases of carelessness resulting to an injury or loss of property of your clients.

Another form of policy similar the previous one is the directors and officers liability insurance. This gives protection to officers and corporate directors liabilities coming from breach of duty, wrongful acts and errors in judgment. In the event that they are sued for wrongful acts during their service in your business, the policy will cover for any losses or costs in the hearing of their case. However, the insurance will not cover intentional acts of the officer or the director.

For small and medium sized businesses, a policy combines the liability and property insurance. This is known as the business owner’s policy (BOP). This would cost less compared to purchasing the two insurances separately. However, not all business types can avail this policy.

Commercial auto liability insurance is for businesses of all types, especially those that are in the transportation business. This will cover for business’s assets in the event that there is an accident while driving a commercial vehicle.

If you want to save money on the insurance that you were going to buy, it would be advisable to avail group insurances. Such policy would include group health insurance. It is the typical health insurance but is written on many people under the one master policy. The insurance will be issued to you as the employer of these individuals. Another policy of this form is the group life insurance, which is a life insurance given to a group of people under a single master policy. An additional policy that can be a big help for your business is the group disability insurance. This has coverage for loss compensation due to sickness and accidents in a group of individuals.

These are just some of the insurance policies that can aide your business in its growth. If you are planning to start a business or already have a business, determine which insurance policies you will need and avail them. This will ensure the continuous success of your business.

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