business insurance

Business Insurance Policies to Consider


18 April,2012

When you are running a business, you want to make sure you are properly covered with the right insurance. While you probably know that you need to make sure that you have worker’s compensation coverage, as well as property insurance, and you want to make sure that your company cars are properly insured, you might not know that there are other types of business insurance that can be helpful to you.

Your business most likely needs protection beyond the “obvious” insurance policies that you buy as a result of common sense. If you are a business owner, consider your situation, and think about which of the following policies might be beneficial in your particular circumstance:

Errors and Omissions Insurance

For many professionals, this type of insurance is necessary. Sometimes called professional liability insurance, this type of coverage helps protect you in the event that someone sues you and claims that you didn’t properly render services. This insurance isn’t for everyone, but those in professional positions — especially when they give advice — can benefit from this insurance coverage. Lawyers, insurance agents, financial planners, accountants, salon owners and beauticians, and others in similar lines of professional and service work should consider this type of insurance.

Business Interruption Insurance

Many small business owners don’t think about what happens if a natural disaster or some other problem keeps the company from operating. If you are concerned that something could happen to keep your business from moving at its regular pace, this type of insurance can ease your mind. You receive a payout that can help you rebuild your business, or at least keep you from completely folding while your business gets back on its feet.

General Liability Insurance

This is the type of insurance that pays out when someone is injured, or if someone’s property is damaged as a result of your business activities (or something that an employee does). You can protect yourself from slip and fall situations, and other issues of liability with this type of insurance.

Business Owner’s Insurance

A business owner’s policy provides you bundled protection. It’s like having several policies in one. It often comes with property and vehicle coverage, and can even include business interruption coverage and professional liability coverage. If you know that you will need several policies to be properly covered, then this might be a more cost-effective approach to buying business insurance, rather than buying several individual policies.

Do I Need Insurance for My Home Business?

For those who own a home business, it is tempting to assume that you are covered. Your homeowner’s insurance should cover, right? And your car should be covered, even if you are driving it for business purposes.

Unfortunately for many, the assumption that your regular policies will cover your home business needs provides false security. Not all policies cover business activities. Some policies will cover business activities up to a certain amount (often smaller than you thought). Before you assume that you are set with your home business, double check your existing policy. You might need to supplement.