If you have a Business or plan to start one, Business Insurance is one of the things that you should consider during the planning stage. Of course it is not necessary to have this insurance, but it will help in various situations like accidents or theft. Anything can happen and it is always better to be protected. There are two main types of Business Insurance:
Property Insurance
This type of Business Insurance covers the property of your company including: property fixtures, for example lighting systems or carpeting, equipment and machinery that your company owns, office furniture, personal computers and accessories, inventory and supplies, and personal property kept at the business site. When signing a Property insurance document it is very useful to consult your lawyer and carefully review the document. One of the biggest problems with this insurance type is usually the value of damaged or destroyed equipment, because with time this amount usually changes and you could get the compensation according to the price at the current moment. Also when you choose this type of insurance you also need to specify which types of losses are covered. Most insurances have “basic,” “broad” or “special” coverage.
Basic
Basic form of Business Insurance covers all the most common problems that any company can face like fire, explosions, storms, smoke, riots, vandalism and sprinkler leaks
Broad
Broad form of Business Insurance covers everything covered by the Basic form plus things like damage from broken windows and other structural glass, falling objects and water damage.
Special
Special form of Business Insurance typically covers all risks, unless they are excluded from the policy. Be sure to remember that theft is not covered by Basic and Broad insurance types, it is covered only by the Special type. This form is most suitable for companies that face unusual risks, due to geographic location or type of business for example.
Liability Insurance
Liability policy covers the damages that your Business must pay to an individual who was injured on your property. Such situations can happen very often in stores or restaurants and some people do that intentionally to sue you and receive compensations from you. Especially if your business is successful. There is also Product Liability Insurance that protects the manufacturer from lawsuits by customers who claim to be hurt by their product. This type of insurance is mostly very expensive because it helps companies to avoid multi-million dollar award after trials. Also this type of insurance can cover auto liability, damages that you or your employees cause in a business related accident. This insurance type is a good solution for a cab company or a transport company.
Each of these insurance types must be reviewed correctly before signed or ordered. Having a corporate lawyer, who is familiar with your company’s history and current status, will help you with choosing the insurance type and reviewing the documents. Be sure to check the web for local agencies that provide Business Insurance before you start.
