An Ounce of Protection - Small Business Insurance Coverage
When you start your own business, there are risks that you are undertaking. What
would happen if someone slips inside your gift ship and decides to take you to court?
How about someone ate a donut in your Coffee Shop and ended up with food poisoning?
Your customer takes you to court. If you live in a hurricane, earthquake or tornado
area of the world, what would happen to your business in the event of a natural disaster?
For all these reasons, Small Business Insurance Coverage is a must. Start with
your personal insurance company and see what they offer.
Protect Your Business - Small Business Insurance Coverage
There are four Basic Types of Small Business Insurance Coverage: General Liability,
Worker's Compensation, Auto, and property/casualty. There is a premium fifth option
called umbrella policy.
General Liability - protects a business against accidents and injuries that took
place on its premises as well as exposures to the company's products.
Workers' Compensation - covers medical and rehabilitation costs and lost wages for
your employees injured on the job. There are two mandatory parts to this type of
insurance: Medical cost and lost wages of injured worker and the employer's liability
from worker's family suing the business in case of death. The third optional item
is termed employer practices for protection against the claims of harassment and
discrimination by its employees. First time purchasers of this insurance will be
charged based on your payroll and the average cost of insurance in your industry.
Auto Insurance - If you use your vehicle for your business or you have employees
who drive the company delivering van, you will need this type of insurance and protect
Property/Casualty Insurance - protects your business building and its content against
disasters (flood, hurricane, earthquake, tornados, avalanches, fire). In certain
areas of the country where these disasters occur often, you may need to pay a premium
to be covered. Be sure to ask. Also, choose the replacement cost option. That allows
you to replace your damaged goods at today's prices not what you paid for them ten
Umbrella Coverage - additional layer of protection. Pays for coverage in excess of
your regular coverage.
Having the proper Small Business Insurance Coverage not only gives you a peace of
mind but it also protects you from a disaster whether it is natural or manmade. Take
your time and complete this very important step properly.