As a new entrepreneur starting a business, there are lots of questions to be considered. Make sure you have questions regarding the type of business insurance coverage your business requires. Commercial business insurance covers a broad spectrum of protection that includes your property, you and your employees, and your liability. As you begin to understand how it works, it is important to remember the ultimate goal is to make sure you are never underinsured or exposed to risk in the event of an incident or disaster.
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 commercial agent and look for the solution which is best for you.
Most businesses are required to have workers compensation insurance when they have employees. Workers compensation covers the employee from lost wages and medical if job related while protecting the business against being sued by the employee.
More specific information is available from the insurance department of your state government and your commercial agent.
General business liability insurance must also be in place to protect the business, employees and the owner against lawsuits brought from claims of injury or damages. A general liability policy will cover most situations that may arise.
There are specific types of 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.
Discuss with your commercial insurance agent what else you should be looking at for in specialized coverage.