Small Business Insurance
Many businesses need four basic types of insurance…
- Property Insurance
- Business Vehicle Insurance
- Liability Insurance
- Workers Compensation Insurance
Property Insurance
If damages or a loss were to occur to the business property from a fire or theft the business would be covered under property insurance. It does not only cover the building, but it also covers the personal property that includes furniture, raw materials, inventory, machines, computers, equipment, and more. Not only are the businesses physical assets protected, but the business operating funds are also protected. These funds in the policy are for the reconstruction of a business after a loss. Some property insurance policies include if there are mechanical equipment issues or a breakdown, cleanup of debris, water damage, and other losses.
Business Vehicle Insurance
Most personal auto insurance policies do not cover the vehicle if it were in an accident when the vehicle is being used for business purposes. This is where the business vehicle policy would provide the coverage for vehicles that are owned by the business. The costs of third parties are paid through the insurance. Third parties consist of bodily injury or property damage. There are several types of insurance coverage’s to consider. Some options to consider when choosing your vehicle insurance are where the business insurance will pay to repair or replace the company vehicle.
Liability Insurance
Any business can be sued for any reason. If a person claimed that your business is the result of their harm than your business is most likely going to be sued. For example, if there was a defective product or service error. If the business is liable then liability insurance will pay for damages, medical bills, and fees for attorneys and other legal expenses.
Workers Compensation Insurance
Excluding Texas, all states require employers to have workers compensation insurance when there is a minimum amount of employees working for the business (three to five employees). This insurance pays for medical expenses and lost salary wages for the injured employee. This is only if the injuries are due to a work related injury during employment, regardless of fault. If a worker’s injury was fatal than the insurance will provide compensation to the employee’s family.