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Weighing your business insurance options

By Compuquotes Team on May 9th, 2008

Business Insurance

With the rising costs of keeping a business going, the last thing that any business owner would want is to have to pay for damages out of their own pocket because they don't have the proper insurance to cover their needs. There are a number of different choices when it comes to business insurance, though, and not all business insurance policies will be right for the needs of every business. In order to make sure that your business has the coverage that it needs without a lot of costly coverage that it doesn't, here are suggestions about the most common types of business insurance that you will likely encounter.

One of the more important types of business insurance that you need to buy is workers' compensation insurance. This insurance is required by law and will provide needed funds to your employees if they are injured or disabled at the workplace while performing their regular duties. The amount of coverage required per worker may vary from one state to the next so it's important that you find out exactly what your state's requirements for workers compensation are if you don't already know.

Another common insurance that many businesses refuse to operate without is liability insurance. This insurance provides liability protection in case the business is taken to court with charges of negligence on the part of the business or its employees. If the judgment is against the business, the liability insurance will pay the court-ordered amount instead of the business itself having to come up with the money.

Some types of business insurance are quite similar to standard insurance policies. Property insurance works quite similarly to the homeowners insurance that you might have on the house where you live, with the major difference being that property insurance provides coverage for a business location instead of a residence. The business is usually covered against fire, wind damage, and other natural disasters, though it's important to note that flood coverage in most cases will not be included.

Along those same lines, many insurance companies will offer a separate business auto insurance so that company cars can be protected under a single convenient policy. These policies in most cases provide the same protection as a standard auto insurance policy, though they may take special pertaining to fleet and corporate vehicles into consideration as well within the policy.

Certain types of business insurance are completely optional but can provide a nice perk to employees if purchased. The most common of these include personal health and dental insurance which can be offered to employees, usually after they reach specific seniority milestones or have met other criteria that is laid out in their employment agreement.

Other types of business insurance that aren't quite as common are also available, such as business interruption insurance that protects against a loss of cash flow due to unforeseen circumstances. The best way to find out exactly what sort of insurance policies are available to your business is to contact a local insurance agent and discuss with them your business insurance options. They can help you to determine which policies would benefit your business and which wouldn't really be necessary.

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