Business Insurance
Business insurance is basically an agreement between you as a business owner and an insurance company. You agree to pay a certain amount every month or year (called a premium), and the insurance company agrees to pay for all of or most of the expenses when certain types of damage or accidents occur during the course of operating your business. What types of things are covered by your insurance depends on the policy, which in turn depends on several factors. At InsuranceNook, we hope to provide you with some helpful information that can aid you in your business insurance quest.
One of the best things you can do to save money is to compare business insurance companies. You can get free business insurance quotes and compare prices on insurance plans that fit your needs here at InsuranceNook.com!
Why Business Insurance Is Good For You
Owning a business can be a thrilling, although highly stressful opportunity. Whether your business consists of just you, or thousands of offices and employees, it can be devastating to lose all of your hard work and profits to a disaster of some sort. Business insurance can protect you from various types of events or misfortunes that can occur when operating a business.
Most Common Types of business Insurance Plans
Business Owner Insurance
This type of coverage offers some liability protection in case of business accidents, as well as what is called “catch-all” coverage for protection from damage from fire and other disasters.
Property Insurance
Usually this type of coverage is an add-on to business owner insurance, and covers damage to your building and the property inside, including inventory and furniture.
Liability Insurance
This kind of coverage protects you when someone suffers an injury or someone's property is damaged while on your business premises or for some other accident in which you may be sued.
Product Liability Insurance
The same concept as the liability insurance mentioned above, but this is specifically for a product that you make. You are protected when someone is injured or harmed by your product. The famous McDonalds coffee-spill case is a good example of product liability.
Errors & Omissions Insurance
This kind of insurance coverage protects you when you make a mistake in a service business that harms someone. For example, doctors carry malpractice insurance, which protects them in case they make a mistake on a patient and are sued. This is an example of errors and omissions insurance.
Business Income Insurance
This kind of insurance covers you if damage temporarily shuts down your business and you lose income, making it so that you can still pay your bills.
Business Auto Insurance
This is an insurance policy that covers all of your business vehicles. Coverage plans vary like regular auto insurance, but they operate for your whole fleet in the case of business auto insurance.
5 Common business Insurance Questions & Answers
Q. In order to get insurance to cover how much I believe my business is valued at, I will have to pay way too much than I can afford. What can I do?
A. There are two things you can try right away to avoid skimping on the coverage you need. Try joining a trade association or other business group that offers discounts on insurance for members. Another thing you can do to lower your premiums is to raise your deductibles. You'll have to pay more out of your own funds if something goes wrong, but at least you can keep a high amount of coverage for your business.
Q. Does business inventory for insurance purposes just mean my product inventory?
A. Inventory for insurance purposes includes your product inventory, yes, but it also includes things like furniture, equipment, and anything else that your business owns. Keeping an inventory of everything your business owns is not only a good accounting practice, but can help you get reimbursed fully if a fire or other disaster wipes out your business.
Q. What is business interruption insurance?
A. This is the same as business income insurance. Many business owners buy insurance in case of fire or disaster, but forget to purchase insurance to cover their costs when they are in the transition period between disaster and reconstruction. Business interruption insurance covers your costs during this period.
Q. What is workers compensation insurance? Is it the same as liability insurance?
A. Workers compensation protects you when workers are injured on the job or when they suffer work related illnesses. Liability insurance generally covers you when someone gets injured on your premises, such as a customer or other non-employee, or an employee that is injured while not on the job.
Q. Can you purchase life insurance for a really valuable employee?
A. This type of insurance policy is available, and it works like a regular life insurance policy, where the business receives a death benefit when the employee dies, based on how much financial loss the company could suffer because of the loss of this employee.
Conclusion
Business Insurance may seem like an expense that you can't afford, but if you are investing heavily in a business, you probably can't afford not to put some money into insurance coverage.
InsuranceNook offers free business insurance quotes from several companies at the click of a mouse. Apply for free quotes for your business insurance today!