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Business Insurance

Business Insurance Keeps Your Business Protected

Avoiding insurance is risky, no matter what type of business you have. Business insurance protects owners from risks such as the death of a partner, an injured employee, a lawsuit or a natural disaster.

Your state will determine what type of insurance is mandatory for your business. Most states require a business with employees to have workers compensation, unemployment insurance and disability coverage. That means a business owned and operated by one person is not required by law to have that coverage. Depending on your business, your state may also require certain insurance for you to operate. For example, if your business has a fleet of cars, vans or other vehicles, then commercial auto insurance might be a requirement. If you apply for a loan, then lenders or investors may also require certain types of insurance to protect their investment.

A limited liability corporation (LLC) is setup to protect owners’ personal assets from liability. However, the business does not have the ability to cover itself from other types of losses, so business insurance is needed for full protection.

There are a variety of policies that help businesses protect operations and assets. Your requirements depend on the type of business you operate.

The simplest form of business insurance is general liability. It covers a business for legal hassles resulting from accidents, injuries and negligence claims. It also pays for medical expenses, property damage, libel and slander and the cost of defending lawsuits or an appeal.

The insurance you need depends on the risks. Your business might need professional liability insurance, which protects against negligence in providing service to customers. Product liability insurance is for financial losses resulting from defective products that cause injuries or other damage.

Malpractice insurance is for doctors, and is a type of professional liability insurance. If you own business property, then commercial property insurance covers damage related to fire, smoke, wind, hail, rainstorms, vandalism and more. Two types of commercial property is available: all-risk policies and peril-specific policies.

When you decide to go into business, learn what type of business insurance is best for you.