There are many types of business insurance and an entrepreneur must take advantage of it as long as he is on his own business. There are ample reasons too on why business insurance is an important tool on keeping your business alive and well protected. Often it is your own state government that determines insurance requirements for businesses. This is the reason why you must be aware on the requirement required by your own state. Most of the time owners of business are made to for workers' compensation insurance, unemployment insurance, and state disability insurance. In other cases, they will also tell you insure specific business activities done by your business. Example of this is when you have a car that you use for the delivery of your goods- that too needs to be insured. Furthermore, if you have lenders and investors, there are added requirements that you must have like business interruption, fire, flood and other protective insurance policies.
There are generally five types of business insurance. They are grouped according to their own features and coverage. The first one is the General Liability Insurance. In this type of business insurance, business owners are covered with the privilege of avoiding legal hassles due to accident, injuries and claims of negligence. It also covers conditions like property damage, medical expenses, and settlement bonds. Aside from that, the business payments can be protected from issues like slander and libel.
The second type is the Product Liability Insurance. This is great for businesses that are into manufacturing, wholesaling and distributing. It would protect the business due to factory defect or bodily harm.
The third type on the other hand is the Professional Liability Insurance. This is ideal for businesses that offer services rather than goods. The coverage in this insurance protects the business against errors, malpractice and negligence in the provision of services to the customers.
Commercial Property Insurance is the fourth type of business insurance. This covers practically everything that the business may experience due to conditions like fire, smoke, wind and hail storms. Civil disobedience and vandalism are also covered in this policy.
A Home-Based Business Insurance is the last type. Homeowners' insurance policies do not only cover home-based business losses as what others often believe. You can actually add riders to the insurance to accommodate coverage on property loss too.
When choosing the best business insurance, do not forget to evaluate your business first so that you can get the points that may align the needs of your business. Share the idea to your business partners too so you can also decide on the appropriate insurance to protect your business.