Natural disasters, injuries to customers or employees, mistakes and automobile accidents all can cause monetary losses to your business. Fortunately, business insurance is available to help mitigate the effects of these unforeseen events.
Function
The function of business insurance is to cover damages due to an event that cannot be predicted. In exchange for this protection, your business pays a monthly, quarterly or annual premium.
Types
There are many types of business insurance, including workers compensation, property, liability, business vehicle, loss of income and errors or omissions.
Features
Some policies require a deductible be paid before a claim is honored. Other policies pay a portion of a loss with your business being liable for the remainder.
Requirements
Some types of business insurance are required by law, such as workers compensation and business automobile insurance. If you use business real estate as collateral for a business loan, your lender may also require you to purchase property insurance.
Considerations
In order to determine how much insurance your business needs, it is necessary to make a list of your business' assets. Once you have this list, contact an agent for help selecting the right policies.
