An Overview Of Business Insurance:
An Overview Of Business Insurance:
Any new company or business should start by purchasing at least the minimum business insurance required by law. The laws vary from state to state, so be sure to look into local laws before purchasing coverage. Most states require that a business take out worker's compensation coverage. Commercial auto insurance is also required in most places if the business owns a vehicle. Besides mandatory business insurance, also other helpful insurance policies should be considered. Error omission insurance, property insurance and employee health insurance are some of the many other business insurance polices that are helpful to have but not required by law.
A company would do well to consider what type of business insurance coverage to take out. The business owner should take into account the nature of the business and where it is located. For example, if the business is located in an area that is prone to earthquakes, it is highly advisable to take out earthquake coverage. A business that uses expensive equipment should insure the equipment in case it is damaged or needs replacement.
Error omission insurance is another helpful policy to consider. Not all businesses need it, but most do. This type of insurance will protect the business from lawsuits should an employee make a mistake. Even the best of companies can make a mistake; after all, all companies are run and staffed by fallible human beings. When a business faces a drawn out lawsuit, this can result in negative coverage and the eventual ruin of the business. Error and omission insurance will provide compensation for the party that is suing the company, enabling the company and the plaintiff to settle out of court. Medical practitioners, accountants, real estate agents and many other professionals would do well to take out this form of insurance.
A business should find a good insurance agency and work with it to draw up a good business insurance plan. Most insurers offer special discounts to those who purchase more than one business insurance policy from the company. A good insurance agency will also be able to give good advice as far as which types of coverage are needed for the business and which are not.
A business owner should look into all forms of business insurance coverage and weigh up the pros and cons. Aside from purchasing the minimum coverage required by law, a wise business owner will consider other business insurance polices. Error omission insurance, property coverage and business interruption insurance are some of the many others polices that are advisable to consider. A business that works in a niche market and has unusual insurance needs will want to consider drawing up a scripted business insurance policy with its insurance agency. Such a policy will be tailor made for the needs and requirements of the business and will provide it with the exact type of insurance that it needs.
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