MONDAY, OCTOBER 7, 2013
Regardless of what type of business you are in, there is necessary insurance coverage to protect your assets. Running your own business is an inherent risk, and having adequate insurance coverage is one way to protect your investment against theft, fire, natural disasters, and other tragedies. Whether you run a nail salon, a bridal boutique, or a digital marketing agency, understanding the basic forms of business insurance is the best way to ensure you get adequate coverage.
Property Insurance
 Property insurance for your business is similar to homeowner’s insurance for your home. It is designed to protect the structure itself. Basic business property insurance protects against fire and theft. Even if you do not have a separate office building, home-based businesses also need property insurance in addition to standard home insurance.
The reason for this is that most homeowner’s insurance policies do not cover home-based businesses. So, if your home was in a fire, and your business inventory was destroyed, your homeowner’s insurance would not cover that loss.
For this reason, you need a separate insurance policy for the property related to your business. In some situations, property insurance it will also provide the money necessary to keep a business in operation while repairs are being made after a covered loss.
Liability Insurance
Anytime you work or deal with other people, liability insurance becomes an issue. This coverage protects you and your business from other people who may feel they are wronged or injured as a result of your actions. Any time you may be found legally responsible for injury resulting from a defective product or lack of care, you can be sued by another person.
Legal bills can get very expensive very quickly, so having liability insurance is important to protect your assets against lawsuits and accusations. This business insurance coverage also provides for medical bills accrued by customers and other guests injured while visiting the business.
Workers' Compensation
If you are the sole owner, operator, and employee of your business, workers compensation is not necessary. However, the moment you hire your first employee, this insurance coverage becomes crucial. Workers’ compensation is designed to cover the medical costs and some portion of lost wages incurred by an employee injured on the job.
Workers compensation coverage protects both the employee and the employer. It applies regardless of who was responsible for the injury, and will compensate an employee's family in the case of death. Businesses with more than three to five employees are required by law in every state (except Texas) to carry workers' compensation coverage.
Commercial Auto Insurance
If you are using a vehicle for your business, you may need to carry commercial auto insurance. This is not just for trucking companies or delivery drivers, even if you are commuting to and from client’s offices, or around town, commercial auto insurance protects you and your vehicles.
Personal auto insurance usually excludes business-related activities, making commercial auto insurance a necessity. In addition, if the vehicle you purchased was bought by the business and the title is in the business name, commercial auto insurance is required.
By Matt Reynolds - Google+
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