A Guide to Business Insurance
Often times business owners are not well informed about the kind of coverage they need to obtain and how they can cut down their overall insurance costs.
Minimums for Coverage
Coverage amounts that are legally considered the minimum will be different depending on the state and the kind of business seeking coverage. The larger the business and the more inherent risks, the more that comprehensive the coverage that will be needed. At the least, most business owners should seriously consider carrying property, casualty, and general liability protection. If your business has multiple employees and uses vehicles for business operations, (or if private cars are used in the conduct of said business), a look into purchasing a commercial auto policy is recommended as well.
Here are some components often found in this coverage:
Public Liability Insurance
This kind of coverage will protect the business from members of the public making claims for compensation due to their own property being damaged or if they have been hurt as a result of business owner negligence, etc. Examples include a slip and fall that a customer encounters while on the business premises or a claim triggered by an object dropping on somebody while on the job. This protection provides coverage for legal costs and other necessary pay outs.
Employers’ liability insurance
This protection is mandated by law if you have people in your employ. You will be safeguarded if an employee becomes sick or is injured while working and seeks compensation from you as a result.
This protects a company by covering the various tools necessary in the conduct of its business. Replacing these various tools can be extremely costly. If they are lost, stolen or damaged, this protection is invaluable.
As a working pro, often times your ply your trade through the offering of your expertise and knowledge. If you are offer consultancy and advisory services, then this is the coverage you likely need. Should a client experience loss due to errors made because of your services, they can make a claim for compensation. In addition to paying out for the claim, you would also be on the hook for any legal fees for courtroom defense. This protection for your business enables you to avoid paying out-of-pocket for costs that are often bankruptcy inducing.