All About Business Insurance

When you operate a business - especially if you have employees or the business is high risk - it's imperative you have substantial insurance, and there are several types of insurance to protect you from every risk your business may encounter. Unfortunately, buying business insurance can be a challenge.

First, understand the different types of business insurance and what they cover. Then turn to your insurance agent, financial planner or broker to discuss your specific needs. It's likely you will need a customized package, a blend of several types of coverage, to guarantee your business is properly protected.

General liability insurance is something every business owner should carry. According to the U.S. Small Business Association, general liability covers "legal hassles due to accident, injuries and claims of negligence." Should you be sued, held responsible for an employee's medical expenses or experience damage to your property, this policy will help. Of course, there are more specific forms of insurance, but general liability provides an overall protective umbrella.

If your company manufactures and distributes retail products, you'll want to obtain product liability insurance. If you are a doctor or someone who renders services, professional liability insurance is a good idea.

If someone gets injured on your property - even if it's not an employee - as a business owner, you can be held accountable. Avoid legal rigmarole by having a decent property insurance policy. If you own a construction business, a company for which heavy equipment is employed or any other high-risk business, you'll want worker's compensation coverage. If you or an employee is injured on the job, this fund will help cover their expenses during recovery.

Do you think because you work at home, business insurance is an unnecessary expense? "Contrary to popular belief, homeowners' insurance policies do not generally cover home-based business losses," notes the SBA. A rider or additional policy may be needed.

Tips for Buying Business Insurance

~Be sure you trust your business insurance needs to a reputable financial organization or agent.

~Be sure to get quotes from several agencies, and don't be afraid to ask for explanations if any of the terms seem unfamiliar, which they probably will.

~Assess your risks. Based on location, risk levels, fire prevention and other factors, your agent will determine your premium and deductible. Bottom line, invest your budget in coverage you need, and don't pay for insurance you don't.

~The SBA suggests adding a business owner's policy to your insurance - "A BOP combines typical coverage options into a standard package, and is offered at a premium that is less than if each type of coverage was purchased separately."

Buying business insurance is a process every business owner should go through, regardless of how complex or convoluted it may be. To make wading through it a bit easier - and to ensure you obtain the proper insurance policies - be forthcoming and inquisitive with your trustworthy insurance agent.

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Turn to an experienced financial institution that understands the ins and outs of procuring business insurance. Experts at http://www.wickhamservices.com/ can help. They boast decades of strategic planning and insurance purchasing experience.

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