Increasing profits is the main goal for many business owners. This allows for continual business growth and higher profits. There are several ways that a business can reach this goal, but without business insurance you are setting yourself up for financial doom, rather than success. Property damages, such as fire, car accidents, and other damage can lead to a lawsuit from an employee, which can put a big dent in your business.
What Is Business Insurance?
Business insurance can basically be defined as protection against business losses against events like property damage, liability issues, etc.
A Variety of Coverage Types
The kind of coverage that will be included in your policy is dependent upon the policy that you choose, the local limitations set in place by state or local governments, and the insurance company. Different kinds of insurance are available, including:
1. Key Person Insurance
The business world has a key person who is so involved in the company that their loss would cause financial damage to the company. Having key person insurance can make sure that benefits will be paid in case of disability or accident, and, in the case of death, this insurance could have provisions that take care of partners and any expenses that are legitimately for the business, including hiring and training costs. This type of insurance is also called a buy/sell agreement.
2. General Liability Insurance
This kind of insurance protects a business against claims of liability, negligence, property damage, personnel or manufacturing efforts, or bodily injury. The liability insurance will cover the medical claims, claims of pain and suffering, and even legal fees if it is covered via the policy.
3. Product Liability
This form of insurance covers claims that are filed due to an injury, damage or death from the use of a product that you are responsible for making or creating. Losses to a buyer, user, bystander that has been affected by a defect or malfunction of a product can be covered under this type of insurance. This is usually included with a commercial general liability insurance policy and is also referred to as the products-completed insurance.
When you own a business and want to be sure that you can continue to grow your business, this type of insurance can be a very big benefit. Look through the different types of insurance to determine which one is the best choice for your business.