Business insurance, keep it simple to start.
The language of insurance can be confusing and overwhelming. It’s best to remember the easiest way is to keep it simple and don’t go it alone.
All business insurance is designed to cover people, property, general liability or income of the business. Pretty simple and straight forward when broken down into those simple segments of coverage. Working with a licensed insurance professional will further help in reducing the confusion and the language of insurance.
Let’s look at the people aspect of coverage. The most important asset of any business is the people who own and work for it. Workers compensation protects these employees.
Its important to remember that workers compensation insurance is required in almost every state. Health insurance, life insurance and disability insurance protect the owners, managers and employees.
Health, life, and disability are benefits which can be offered but aren’t required. In a few states, disability insurance is also required. Your state department of insurance and your insurance agent will guide you through the people aspect of covering your business.
Property insurance will include the building your business is located, either owned or leased. In addition, furnishing, and equipment as well as machinery, tools, computer and phone systems, anything used to conduct business will be protected.
Liability insurance protects the business from being held liable for injury or error. This includes damage to property as well as to people as well as implied damages. It is important to remember that liability insurance covers the cost of litigation for these claims. In addition to general liability insurance, discuss with your insurance professional if professional liability insurance or errors and omissions insurance, two other forms of business liability insurance may be needed.
The last type of coverage is income insurance. If revenue stops, a business cannot survive a long time. Should a disaster hit, business interruption insurance can provide a stream of revenue while rebuilding or relocating to a temporary or permanent new location. This type of coverage is usually added as a rider.
While we try here to keep the discussion on insurance simple, don’t make assumptions about your businesses coverage. Work with your agent to determine what coverage is appropriate, how it works, and what happens in the event a claim needs to be placed.