What Does Business Insurance Cover?
Jul 15th, 2010 by admin
With so many other details to work out a business owner may overlook the need for insurance, or have absolutely no idea what coverage is needed. Basically, business insurance can be obtained to cover the costs of any liability or loss. Each business is unique and custom insurance policies can be written to provide for these individual needs. It is worth the consultation with the insurance representative to assess the coverage requirements of the business to protect it and the owner from substantial loss.
Property insurance covers damages to the building and glass as well as inventory. Even if the space is rented, insurance can be obtained to cover the losses from fire or broken pipes that cause water damage or any other kind of physical destruction. A natural disaster or flood can be incredibly costly to an uninsured business. Insuring the company vehicle(s) will not only keep the business compliant with motor vehicle law, but also cover the assets being transported.
Liability protects the business and its owner from a lawsuit from someone who was injured on the business property or by the product. The insurance company is the first line of defense as they will thoroughly investigate any claim allowing the owner to continue running the business. They will handle the claim and any payout requirements without additional cost to the owner.
What about employees? Workers’ compensation insurance is required by law. This type of insurance pays the costs of an employee who was injured while working. To attract and keep the best employees a business owner might offer health insurance and life insurance to all full time workers.
There are specialized business insurance products available as well that target the specific needs of an individual enterprise, such as business catastrophe and errors and omissions. There is even insurance available to protect against acts of terrorism.
All of this may sound expensive; therefore any business owner should consult an insurance representative to design a custom policy for their enterprise. Premium payment plans are often available. The cost of insurance coverage is negligible when compared to the cost of losses that may be sustained out of pocket. Business insurance is peace of mind when the unexpected occurs.
