Thursday, November 22, 2007

Insurance 101 for Small Businesses



As a small business owner, chances are that you will eventually need to address some type of threat against your business. Whereas the threat comes from nature, a burglar, or your products themselves, it is very important for you to have protective measures in place to minimize the effects of such threats. It is very important to have different types of insurance to prepare you business against such threats.
Below are some insurance plans that your business should consider having:
Property Protection: Property insurance should include a broad form of coverage to protect your business from various possible losses. If you own a building, you will be required to have property insurance. However, if you lease your business' space, the landlord should provide this coverage. Generally, this type of insurance should include coverage to protect your business in case of fire, flood, earthquakes, and, if possible, theft
Liability Coverage: Product liability insurance protects your business if one of its products or services injures someone. On the other hand, a General Liability insurance will cover your business in case there is an accident inside of your business (i.e. the typical 'I tripped because you floor was wet ').
Business Interruption: Protects you against losses that your business incurs when it has to close down temporarily due to a fire or other natural disasters. Usually, it provides reimbursement for lost revenue and to cover certain operating expenses.
Umbrella Insurance: This type of insurance offers extra coverage that becomes effective once the limits of your primary policy are reached. They usually provide excess coverage for liability insurance and worker's compensation insurance.
Health Insurance: This type of small business health insurance covers medical expenses if you get sick. It is common for many small businesses not to have this type of insurance, thinking that they cannot afford it. Shop around and you will see that there are many different business health insurance options available at different rates. Remember that health insurance plans might help you to attract new employees and retain talented employees.
Worker's Compensation: If your business has employees, worker's compensation insurance will be mandatory. This insurance covers employees in the case of accidents related to their jobs. Startup businesses usually find that the State Compensation Fund can accommodate their needs; however, as the business grows, remember to 'shop around' to look for better alternatives.
Tip: Always remember to shop around in order to find competitive rates for your insurance needs. Always choose a policy that covers your needs and that insures your assets effectively. Most importantly, once you have found the adequate insurance, be sure to read the policy carefully and understand it fully before signing it.

Article Source: http://EzineArticles.com/?expert=Andrea_Stiles_Pullas

3 comments:

Amelia said...

product liability insurance
Insurance is must for everyone. Whether a person owns a big business or a small one the role and importance of insurance remains same for both. I already made few of the insurance schemes that you have discussed and is now deciding to make out business interruption insurance policy. Thanks for explaining this option.

Stella Henry said...

Business Insurance Australia

The purpose of insurance is to transfer a risk that you can afford (i.e. the payment of a premium with no guarantee of its return) to cover a risk you cannot afford. For example, what homeowner does not insure his or her personal residence from damage by fire?

Liam Manning said...

I'm glad to have found this, thanks for sharing. I have a friend who's been looking into small business insurance in Massachusetts because he started his own recently. Do you know the best way of getting it? Thanks for your help.