Whenever you think of business insurance and all the language which those in the insurance industry use, you will want to know these basics. When you begin your journey to acquire insurance and it all seems overwhelming, remember the basics we will discuss here.
Business insurance will essentially cover one of the following:
In insurance-speak, property used in your business will include the building in which your business is located, whether it is leased or owned.
Property also includes equipment including business equipment such as computers and tools, furniture, and anything else which is used to conduct business, including vehicles. Property policies are created in order to protect these assets.
People in this case include you and anyone who works for you. As a business owner, your employees are one of your greatest assets. Hence, you might consider offering benefits such as health insurance and life insurance as well as short- and long-term disability insurance.
As of this writing, worker’s compensation is required in every state except for Texas. Though Texas law does not require worker’s compensation, many customers may require you to carry it.
Business liability insurance is created in order to protect your business from being held liable for error or injury. This includes damage to property, people, and implied damages. Liability insurance covers the cost of litigation for these claims.
Your business cannot survive very long if your income stops. If disaster hits, business interruption insurance can provide a revenue stream while you rebuild or relocate to another location, either temporarily or permanently.
Use this basic information to work with your licensed insurance professional. Together, you can determine the coverages your business needs and how to maximize your coverage.