Business insurance is a vital way to help protect your company against the various unknown events that can adversely affect it. When you think of this type of coverage, you might automatically perceive business insurance as a method to protect the building that you work out of, along with the tools inside. Although this is a main component of any insurance plan for your small business, there are a variety of other features that quality coverage should contain. A basic business insurance plan should cover your assets as well as provide liability and casual coverage. Depending on the size and type of small business you own, you might also look for a larger plan that features other components.
One of the main features of a basic insurance plan protects your place of business in the case of a disaster. Severe storms, fires and vandalism can strike without warning, and most small business owners do not have the means to rebuild or pay for costly repairs. Even if you do not own the property in which you operate your business from, you should still maintain this type of coverage in order to protect the assets located inside the building, including computers, furniture and other goods. Quality business insurance plans will also offer you financial compensation in the event that you cannot run your business due to such events that occur at no fault of your own, such as hurricanes.
If you are like many business owners, you might have a vehicle that you use primarily for your job, but you might also utilize it for personal use. Although you have personal automobile insurance in place, this type of coverage usually does not help you if you have an accident in your vehicle while using it for business purposes. In order to protect yourself as well as your vehicle, it is important to include auto coverage in your business insurance plan, especially if you have multiple cars or trucks in use.
Liability and Casualty
Liability insurance protects you financially in the case that you are sued for negligence. This feature is especially important if you have employees because it can guard your business against mistakes made by your staff. Casualty insurance is sometimes confused with basic property coverage, but it can also help protect a small business against intangible losses.
Not only does this type of coverage help to protect the well-being of your employees, but you are far less likely to have a high staff turnover as well. Most American workers rely on their employers for group health insurance, and you can reap the benefits of tax breaks by including this feature in your overall business coverage plan.
You can include workers’ compensation protection within your insurance plan. Although the laws vary by state, the basic function of this type of protection is the same across the board. Basically, your business insurance covers the costs associated with on-the-job injuries and lost wages, and in turn, your employees cannot sue you.