Simple Information About Business Insurance
If you are a new entrepreneur or considering starting a business, insurance is an essential piece of that puzzle.
It’s normal to have questions regarding the type of coverage your business requires, and that is why you should consult your licensed insurance professional about this item of insurance.
Commercial business insurance covers a broad spectrum of protection that includes your property, you and your employees, and your business liability. As you begin to understand and put the pieces together, it is important to remember the ultimate goal is to make sure you are never under insured or exposed in the event of an incident or disaster.
The business property insurance will cover losses to your building, and the property housed in it. The computer and phone systems, furniture, finished goods, as well as carpeting, lighting fixtures and supplies will be covered. There are two options, either actual cash value, which is purchase price less depreciation, or the replacement cost of the item. Discuss these differences in more detail with your agent.
Most businesses are required to have workers compensation insurance. This covers the employee from lost wages while protecting the business against being sued by the employee. More specific information is available from the insurance department of your state government.
Business liability insurance must also be in place to protect the business and the owner against lawsuits. A general insurance liability policy will cover most situations that may arise.
There are specific types of business liability coverage for risks not covered within the general liability policy. An example would be liquor liability insurance which is a separate coverage generally taken out by bars and restaurants. Ask your licensed insurance professional what else you should be looking at for specialized coverage.