Insurance for Business – 5 Types of Business Insurance
Insurance for Business – Insurance has never been a new topic. It`s something everyone knows and talks about. Even the uneducated know a little about it and how it works.
Insurance for Business – Different Types of Insurance Scheme
There are different types of insurance scheme, the one that covers your home, your car, your properties, your life, umbrella Insurance and even business insurance.
Every insurance scheme have different types. That is; when it comes to car insurance for instance, there are different car insurance policy you can purchase and what each of them covers.
From the day an Entrepreneur starts a business, there are different risks that arises from the business. The more the business grows, the more risk it entails.
Even before a first employee is hired, the business is already a risk so why have too many risk without a cover, try purchasing insurance that can cover some of the risk involved in the business.
There are different types of risk that a business can face whether small or large a good example is fire. When fire burns down your office, almost everything associated with the business is gone.
Why lose all these when you can comfortably purchase an insurance policy to cover for that and even more. For more information about Insurance for Business – 5 Types of Business Insurance click here
Here are some insurance policy relating to business
#1. Professional Liability Insurance
Professional liability insurance also known as errors and omission insurance, covers a business against negligence claims due to harm that occurs from failure to perform or from mistakes.
There is no business insurance policy that covers all risk to a business. Each industry has the one fitted to them and the one which is most needed.
#2. Property Insurance
Whether a business owns or lease its place, property insurance is a must. This insurance covers equipments, signage, inventory and furniture in the event of fire, storm or theft.
However, mass destruction like flood and earthquake are usually not covered under a standard property insurance policy.
If the location of your business is probe to these hazards, discuss with your insurer for a separate insurance policy to cover that.
#3. Workers` Compensation Insurance
Once the first employee has been hired, workers`Compensation Insurance should be added to the biz.
This will cover medical bills, disability and death benefits in the event an employee is injured or dies as a result of his work with the business.
Even if employees are performing low risk job, this insurance policy is still necessary Incase of little slips around the office.
#4. Home based businesses
Most professional Businesses starts from home. Like the famous Amazon started from the garage.
Unfortunately, homeowners insurance policy do not cover home based businesses in the way commercial insurance policy will.
If you are Operating your business from home, ask your insurer for a policy that would cover your equipment and inventory in the case of any hazards.
#5. Product Liability Insurance
If your business manufactures product for sale in the general market, product Liability Insurance is a must. Even a business that takes every required precautions to make sure that their product is fit can find themselves in a lawsuit for a damage caused by one of their products. It also helps to cover a business in case of any dangers like that.
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