Business Insurance Don't Start a Business Without It!
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Pre-Pearl Harbor Risk Assessment is a term that was coined by Steve Harper, a professor of management at the University of North Carolina ay Wilmington. According to Harper, you must look at every facet of risk that could arise at your business, everything from auto safety, to people slipping on your walkway to anything that could possibly arise and from there, decide on appropriate business insurance.
Business insurance is essential if you start a small business. There are a variety of business insurance policies and you must figure out which ones are right fro you. The options include business owner coverage, property insurance, liability insurance, product liability insurance, errors and omissions insurance, business income insurance and automobile insurance.
Business insurance is protection for your company in the event that something unforeseen happens. While you do not want to predict disaster, even the smallest unexpected problem could spell trouble for your small business. Investing in the right type of business insurance could mean the difference between running a successful business or being forced to close your doors.
There are a variety of types of business insurance. To make sure you choose the appropriate types for your needs you should learn everything you can about each kind and then sit down with a qualified professional from your insurance company and decide upon the coverage that is right for you.
Source: Microsoft Small Business Center (http://www.microsoft.com)
Get More Than One Opinion on Risk Factors
Once you have compiled your own list of possible risk factors go one step further and find two or more insurance agents to come into your place of business and do their own risk analysis. In most cases this is a free service. It is best to find insurance agents who are familiar with the type of business you run.
After you have done all this, then do your research at your local town hall or state insurance office. Some communities as well as some states have mandates for specific types of insurance coverage if you state a small business.
Checklist of Business Insurance Policies
No two businesses all are the same but there are seven basic types of business insurance that you need to acquaint yourself with.
Business Owner Coverage
Also sometimes referred to as “catch-all” coverage, this type of business insurance provides you with damage protection in the event of a fire, hurricane, earthquake and so. This also carries with it a certain amount of liability protection.
Property Insurance
This type of insurance aids in supplementing the property coverage that is a part of business owner insurance (as described above). If damage happens to the building where your business is located, this type of insurance will cover it. It also covers all of your furniture, business equipment and inventory.
Liability Insurance
This is considered to be one of the most important forms of coverage you can purchase. Liability insurance covers injuries to people that you are deemed responsible for as well as any damage that takes placer to your property. This can be anything from the mail carrier who gets bit by your dog when he delivers a package to your business to a client who cuts themselves on your rusty outdoor railing.
Product Liability Insurance
This form of coverage protects you in the event that your product causes harm or injury to someone. This is of particular importance to people who start small businesses that sell food. There is always a concern over such things as stale products or food poisoning.
Errors and Omissions Insurance
You need this type of insurance coverage if you run a service-based business in the event that as the business owner you do something wrong, make a mistake or are neglectful and it causes harm to one of your clients. An example of this kind of insurance is doctor’s medical malpractice insurance which by law all practicing physicians must be in possession of.
Business Income Insurance
This kind of coverage is in place as a form of disability coverage for your business. In other words, if damage occurs and your business cannot operate for a period of time then you will still earn income.
Automobile Insurance
If you use a vehicle in the commission of a business as most people do, you will require automobile insurance. This is both liability coverage as well as collision coverage.
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Remember the big rule of business insurance: Never, ever settle for insurance you know to be inadequate, such as $300,000 in property insurance for a shop worth well more than a half a million dollars. |
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Disclaimer: Ideawala.com does not recommend or endorse the products or services mentioned by the authors. We have not verified authors' credentials. We do not guarantee the accuracy of the information in the article or the earnings claims. Nothing in this article should be construed as business, legal or tax advice. Please consult a professional business advisor, an attorney or an account for specific advice in your situation.
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Posted May 20, 2008
This kind of coverage is in place as a form of disability coverage for your business. In other words, if damage occurs and your business cannot operate for a period of time then you will still earn income.