Insurance Guidelines For Your Small Business

by Guest on June 15, 2012

Comprehension in regards to insurance for any small business is often perceived by owners as imperceptible and overpowering. With so many reservations as to what is really vital or what can be eliminated, it is critical that a business owner can trust their insurance agent in providing the appropriate coverage needed.

Regardless of what small business you are in, you should always have:
• Liability insurance
• Property insurance
• Workers compensation insurance.

Liability Insurance for the Smaller Business:
Liability insurance shelters your company’s assets especially if being sued. Policies often amalgamate the liability and property insurance into one singular document. While choosing liability insurance be sure the coverage is more than adequate for any risk in regards to your particular business.

The overall liability insurance covers:
• Bodily injury
• Personal injury
• Property damage (including false advertising)
• Lawsuit damages (most have a maximum payout per individual case)

Note: Think about purchasing insurance called umbrella liability, as it offers ancillary coverage that is not included in your general liability package.

Property Insurance:
This insurance protects the companies physical assets; equipment, inventory, and of course, the building itself. Property insurance includes all damages incurred from:
• Accidents
• Fire
• Theft

For additional fees coverage can be obtained for:
• Business disruption (aids in keeping business going during crises caused from natural disasters)
• Equipment coverage while traveling
• Home-based business insurance. (check to see if this insurance might be able to be added to a homeowner’s policy)
• Internet insurance (safeguards Internet businesses against hackers and viruses)

Workers Compensation Insurance:
In all but one state, Texas, small business employers are legally bound to procure workers compensation. The insurance encompasses medical expenses plus lost wages for all workers who are hurt on the job. This coverage varies depending upon the state you are doing business in.

Dependent upon the state that your small business is located in, unless there is proof of reckless misconduct, imbibing of alcohol or any type of drug abuse, workman compensation pays employee benefits, regardless of which party is at fault. Of course this does not necessary include part-timers, volunteers and certain other employee sources.

Advice and Tips :
• Never hold back important information from your insurance agent in regards to loss disclosure.
• Business insurance premiums for burglary, casualty and fire are tax deductible as business expenses unless it is a self-insurance plan.
• Search out a minimum of three viable bids. Use all likely resources such as independent or direct agents and brokers. Pay particular attention to representative’s discussion on prevention of losses and proposals for any specialty coverage that might pertain to your individual business.
• Circumvent duplication as well and any possible overlapping in policies.
• Every year you should sit down with your insurance agent and reassess your coverage,

Small businesses in the United States, are at an exceedingly high level for being underinsured. Don’t become one of the statistics that fall into that category.

About The Author

John Hugh writes for Smallbusinessinsurance.com and is open to writing on a freelance basis about anything related to the insurance industry.

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