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Business Insurance is a Necessity

By Compuquotes Team on March 27th, 2008

Business Insurance

The importance of purchasing business insurance can not be stressed enough, no matter how big or small your business may be. Many new business owners are under the misconception that business insurance is only for large, thriving companies, and that they cannot afford such an expense when they are just starting out. The following paragraphs will discuss why business insurance is not a luxury, but a necessity for all business owners.

Accidents cannot be predicted, nor can they be stopped. For example, even the most experienced landscaper has been known to accidentally snip something besides the bushes. If he is working on a $400 job when this happens, and the repairs will cost him $1000, he loses a substantial amount of money for the day. Having a good business insurance policy in place, the repairs will be covered, and no money is lost.

In addition to work related accidents, it is impossible to prevent crimes against business, like robbery, either. Consider this scenario. A small store owner is calculating his overall profits of the day, which he determines to be $2,500. Before he can put the money into the store safe, he is robbed at gunpoint, and his profits are lost. A business insurance policy will most commonly cover any stolen money, as well as any damage the robber may have inflicted upon the store. Without business insurance, the store owner loses his profits for the day, and is stuck with the expense of repairing any damage caused during the robbery.

The type of business insurance you will need will be determined by what type of business you own. Most generally, three main types of insurance coverage are needed for any business. These types of business insurance coverage are:

• Property insurance
• Liability insurance
• Business interruption insurance

If you have all three of these types of coverage included in your business insurance policy, you should be all set! The property insurance will cover your building, as well as all of its contents. The liability insurance will cover any accidents that may happen due to your business or product. Finally, business interruption insurance will cover you in the event your business has to be put on hold due to any man made or natural disaster.

In order to take advantage of the lowest rates and premiums for your business insurance, it is important to do your best to control your costs and losses. By making your workplace as safe as possible, you are helping to do just that. Be sure you have a security system in place, as well as sprinkler systems and fire extinguishers, in the event of a fire. If your business has an overall good loss history, in addition to a low rate of accidents or incidents, it can also help to reduce premiums with your chosen insurer.

There are many other options associated with business insurance than the ones mentioned above. Depending on the amount of money you wish to spend on your business insurance policy, the options are nearly unlimited. Before you decide on any business insurance policy, it is important to do your research, and compare prices.

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