Every business needs
to consider several types of insurance depending on the nature of the
business. You may want to consider working with an insurance professional
to make sure you have the right types of policies to provide the coverage
Many businesses provide health insurance as part of their overall employee
benefit program. The cost of health insurance continues to rise and you
may want to consider having employees pay some part of the cost. If you
have a small business with only a few employees, you may want to consider
a group plan to cover employees and your family. By being part of a group
and having employees pay part of the their costs, you may find it is not
much more expensive than getting personal health coverage. You may also
be able to improve your coverage in this way.
Just about every business should have insurance to cover the loss or damage
to property, inventory or equipment. Premiums vary according to the type
of property, coverage limits and what you insure against. If you have
electronic equipment (such as computers), be sure to investigate how your
policy works in case of damage to the files (power outages or surges)
as well as damage to actual equipment. Backing up files and storing them
in a secure, off-premises location is very advisable as well.
You may want to investigate insurance that would provide benefits if you
were no longer able to conduct business in your usual fashion. These policies
vary greatly in cost depending on what is covered. However, you may want
to consider what would happen if you could not occupy your location in
case of disaster.
This insurance can cover damages you pay as a result of your actions or
negligence, or if someone is injured while at your business. Everyone
has heard of the large damage awards being made when a customer slips
and falls because the business did not melt the ice in front of the door.
Be sure to discuss this type of coverage with a qualified insurance professional
to make sure you are adequately covered. The trend toward large jury awards
appears to be going to continue.
This insurance provides coverage for medical and related costs for accidental
injuries suffered by employees at your workplace. The amount of coverage
required varies by state.
If you use an auto, even if it is your personal one, you may be required
to have a commercial auto insurance policy. If you are a sole proprietor
and use your car, be sure to discuss this with your auto insurance provider.
The usual cost of umbrella insurance is low. This coverage fills in the
gaps of your other policies or provides additional coverage once the original
policy limits are exceeded. This can be extremely valuable in case of
large losses. Many companies offer these policies and you may find that
one of your professional organizations has a relationship with an issuer
that will keep your cost low.
Most businesses need more than one type of insurance coverage. Spending
some time considering what is needed and how the policies can be structured
for your business is probably a good use of time and effort. Managing
and growing a business is hard enough without having to worry about not
being covered if unforeseen events occur.