Saturday, June 30, 2012

What are the Different Kinds of Business Insurance

insurance
Insurance
Running a business normally requires making a capital investment. Business insurance protects that investment against financial risks when unexpected events occur. 

Many governments tell businesses which insurances they must have to operate legally. Depending on what kind of business you have, determines what insurance you need to carry. There are many types of business insurance. Which will apply to your business.

There are several kinds of business insurance:

General Liability Insurance.
This type of insurance covers the business owner from accidents, injuries, and claims of negligence. This kind of coverage protects against payments when the result of bodily injury, property damage, medical expenses, libel, slander, the cost of defending lawsuits, and settlement bonds or judgments that are required during a legal procedure.

Product Liability Insurance.
If your company manufactures a product that is not safe then this insurance protects your company. Because of a defect know or unknown that occurs and produces bodily harm this insurance will protect you from financial loss. The amount of coverage depends on the type of product and the size of the business.

Professional Liability Insurance.
This is like product liability insurance but this type of liability covers services. This type of insurance also is known as malpractice insurance. It's coverage is also known as errors and omissions insurance. This kind of insurance protects your business against malpractice, errors, and negligence in provision of services to your customers.

Commercial Property Insurance.
This kind of insurance covers everything related to damage caused to your business. Property insurance covers damage to property from  fire, smoke, wind and hail storms, civil disobedience and vandalism. This insurance covers the need of rebuilding after some unforeseen event destroys your business completely or partially.

Property insurance policies come in two basic forms: (1) all-risk policies covering a wide-range of incidents and perils except those noted in the policy; (2) peril-specific policies that cover losses from only those perils listed in the policy. 

Home-Based Business Insurance.
If you have a home based business your normal "Homeowners Insurance" will not cover any business related liability or damage. You have to obtain specific business insurance or have a rider on your homeowners insurance to cover business specific liability.

It takes a business insurance specialist to to set up the proper insurance coverage to stay in compliance with governmental regulation and to have proper coverage for your specific business type.

2 comments:

  1. Many small businesses owners working from home often dont realise there home insurance is void if
    damaged is cause from work related incident

    ReplyDelete
  2. That's so true, many people do not know that.

    ReplyDelete

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