21 January 2010

7 Different Types of Business Insurance for Your Business Needs

The different types of business insurance are as follows: property  insurance, casualty or liability insurance, auto insurance, crime  insurance, business interruption insurance, business life insurance, and  worker’s compensation insurance.

As a business owner, you should always be mindful of the huge  investment you have allotted in running your own business. One way to  protect your investment is by purchasing business insurance. Business  insurance is a great help in reducing financial risks brought about by  unpredictable events like accidents, natural disasters, lawsuits, and so  on. Business insurance is comprised of many types so the cost in  obtaining one varies from one insurance provider to another. It is ideal  that you ask for an insurance sales leads agent to guide you in  choosing the best business insurance for you. Below are the different  types of business insurance:

Property insurance

Property insurance insures an owned, leased or rented property,  including its contents, against damage or loss from fire, hurricanes,  hail storms, explosions, theft, vandalism, and other disasters. Talk to  your agent about the details of your property insurance coverage needs  because this type of insurance can be specific and applied to one type  of risk. Purchasing a few components of this type of business insurance  can be costly, so you should choose the exact coverage you need.

Casualty or liability insurance

Casualty or liability insurance covers the loss and damages caused by  acts of negligence or omissions. It also covers lawsuit costs and  settlement bonds if ever the problem goes to court. This type of  insurance is best paired with property insurance, and is not  particularly connected with life or health insurance.

Auto insurance

If you happen to have a vehicle used for business purposes, then it  is likely that you need auto insurance. This will cover the cost of  repairing any damage to your vehicle and to other vehicles if an  accident occurs.

Crime insurance

Basically, crime insurance covers the damages and loss of the  business against robberies and even employee theft.

Business interruption insurance

In cases when the business may have to temporarily close, business  interruption insurance helps support the business until it reopens  again. This type of insurance covers the damages and loss of the  business’ calculated earnings during those periods.

Business life insurance

This type of life insurance is particularly for businesses run by  partnerships or corporations with some stockholders. The business life  insurance insures the partners and stockholders of the business by  dispensing money to purchase the portion or business interest from the  family of a deceased partner or stockholder.

Worker’s compensation insurance

Worker’s compensation insurance is a must for businesses with a fair  number of employees. This will cover the damages and medical expenses of  your employees for on-the-job injuries.

It is better be prepared than to risk your business to any financial  crisis. Business insurance is a sure back-up plan when business trouble  arrives.

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