Business Insurance 101


OfficeSettingShopping for business insurance doesn’t have to be a daunting task.  Sure, the terminology and general language can seem foreign to those never dealing with it before, or even having some experience.

One easy way to break it down to the basics is to remember all business insurance covers one of four things; liability, property, persons, or income.  It really is that basic.

First, let’s look at liability insurance.  Try as we might, not one of us is perfect.  It’s very possible to make a mistake, or be presumed to have made a mistake.

In fact, when dealing with the public and clients, it just a matter of when, not if a claim will be made against your business.  Liability insurance will protect your business and you as the owner in the event you are sued and taken to court.  Simply stated, liability insurance will cover the legal fees, court costs, and any awards up to the limit of coverage while allowing the owner to concentrate on running the business.

Property insurance is next.  Property insurance is for protecting the business property such as a building, tools, equipment.  In the event of an accident or disaster, your property insurance will cover the replacement or repair necessary to get your business back on track.

How does business insurance cover persons?  Simple, workers compensation, disability, life and health insurance are the major types of insurance for persons.  In most cases, workers compensation is required by any business with employees and some require disability insurance as well.

Finally, we have income insurance.  In the event of a major incident or catastrophe, business interruption insurance will provide revenue to the business for salaries and overhead while repairs or construction takes place and the business has no revenue stream.

So now you know the basics of business insurance.  It still takes meeting and reviewing your particular business needs with a licensed insurance professional.

Within the four basics covered above, are numerous types of coverage and insurances which combined can provide a good overall insurance package.   Work with your licensed professional to maximize protection and value of your small business insurance package.