Small Business Insurance-Key Factors To Consider
Insurance is a binding contract between the insurer and insured whereby the insurer compensates the loss of the company for specific damage, loss or injury suffered in return for premiums paid.
Insurance serves as a cushion for unfavorable circumstances that might occur in the future. It may cover your assets and revenue, personnel and liability to customers. As owners, we cannot risk running our business without this protection and security. It is essential to avail of not only one but several insurances in order to secure our valued assets, our business.
There are two kinds of small business insurance that are worth taking into consideration.
First are the insurances mandated by law and the second is the optional insurances. Insurance mandated by law are unemployment insurance, social security and workers' compensation.
Unemployment insurance and Social Security provide benefits for the employees and their families such as expenses for the aged and disabled persons, full retirement benefits, Medicare, Supplemental Security Income and Medicaid. For work-related injuries the Workers' Compensation Insurance shoulders the expenses of the medical bills.
Optional insurances cover different kinds of risks from calamitous events such as weather or storm damage to foreseen liabilities. This type of insurance includes Business Owner Coverage also known as Catch-All Coverage and provides protection from events like fire and flood.
Property Insurance covers damages to both real and personal property of your business; Liability Insurance regarded as the most important insurance gives you protection from liability suffered by other people because of your business.
Other types of insurance policies to be considered, depending on your business and the legal requirements of your area or county include product Liability Insurance, Errors and Omissions Insurance which is useful in service based businesses, Business Income Insurance secures your monetary loss due to temporary shut downs or limitations in business. There are also other minor kinds of small business insurance for incidents like burglary, fidelity of employees and machinery breakdown.
In choosing which insurance best fits your company, you must reflect on the type of risks your business might face. You might want to discuss these matters with your insurance company or broker.
Despite several advantages offered by insurances, many novice entrepreneurs are still hesitant in securing insurances because this would mean additional expense to their fledgling business but Contrary to what many small business owners think, small business insurance is not a problem but a solution to a problem.
Insurance serves as a cushion for unfavorable circumstances that might occur in the future. It may cover your assets and revenue, personnel and liability to customers. As owners, we cannot risk running our business without this protection and security. It is essential to avail of not only one but several insurances in order to secure our valued assets, our business.
There are two kinds of small business insurance that are worth taking into consideration.
First are the insurances mandated by law and the second is the optional insurances. Insurance mandated by law are unemployment insurance, social security and workers' compensation.
Unemployment insurance and Social Security provide benefits for the employees and their families such as expenses for the aged and disabled persons, full retirement benefits, Medicare, Supplemental Security Income and Medicaid. For work-related injuries the Workers' Compensation Insurance shoulders the expenses of the medical bills.
Optional insurances cover different kinds of risks from calamitous events such as weather or storm damage to foreseen liabilities. This type of insurance includes Business Owner Coverage also known as Catch-All Coverage and provides protection from events like fire and flood.
Property Insurance covers damages to both real and personal property of your business; Liability Insurance regarded as the most important insurance gives you protection from liability suffered by other people because of your business.
Other types of insurance policies to be considered, depending on your business and the legal requirements of your area or county include product Liability Insurance, Errors and Omissions Insurance which is useful in service based businesses, Business Income Insurance secures your monetary loss due to temporary shut downs or limitations in business. There are also other minor kinds of small business insurance for incidents like burglary, fidelity of employees and machinery breakdown.
In choosing which insurance best fits your company, you must reflect on the type of risks your business might face. You might want to discuss these matters with your insurance company or broker.
Despite several advantages offered by insurances, many novice entrepreneurs are still hesitant in securing insurances because this would mean additional expense to their fledgling business but Contrary to what many small business owners think, small business insurance is not a problem but a solution to a problem.
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