business insurance

If you have built your business from the ground up you know very well that bad things can happen in a hurry.  You have worked very hard to get your business to where it is today, so don’t let something unforeseen ruin your years of sweat equity.  Insurance is needed as part of a plan for the future security of the business.  If your business is properly insured then you can focus on the day to day operations rather than stressing about the next catastrophe.

There are also laws in each state which determine the situations in which insurance is required.  Sometimes it is just a good idea to purchase it and other times it will keep your company in compliance with regulations.  Be sure to be covered not just for unfortunate events but from government interference as well. Make sure that your coverage is enough to be legal.

Of course this is another expense that will take away from your usable resources, but it is an important one.  Depending upon the size of your business and how many employees you have the price will vary.  Other influences on the cost of the insurance include the type of coverage you purchase, the type of policy, and the type of business you conduct.  Explore all your options to ensure the right type of insurance and the balance of price against increased coverage to discover what is best for your business.

What should be covered by business insurance?

Depending on the type of business you run, you will want different types of insurance.  The following are just a few types you may want to consider.

  • Spoilage: This covers you if your business works with food or other perishable items then this type of insurance will cover your products in case of any kind of accident or disaster that causes it to go bad.  If your machinery breaks down or if there is an extended power outage and your goods are destroyed.
  • Umbrella Insurance: This is a type of liability coverage that will protect you and your business from lawsuits.
  • Transportation & Cargo: This covers losses associated with being transported in a vehicle owned by your business or by other carrier companies you work with.
  • Other specialized business insurance: Just about any situation that you or your associates deem to be a risk to the success of your business can likely be covered.

Differences in types of business insurance

Not all businesses are the same and therefore not all insurance should be the same.  A non-profit or religious organization will need different coverage than a restaurant or a real estate business.  Other types of specialized coverage include insurance for:

  • Wholesale businesses
  • Retail stores and outlets
  • Professional services such as veterinarians, medical professionals, etc
  •  Hospitality industries such as hotels and bed & breakfasts
  • Educational based business such as schools, art galleries or museums
  • Auto Repair shops
  • Manufacturing companies which produce any kind of food, equipment, etc

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