subject: Useful Insurance Policies For Business Owners [print this page] Useful Insurance Policies For Business Owners
Today's society is especially litigious. People do not hesitate to take even the smallest occurrences to court in the hopes of winning big money. Businesses and business owners are especially susceptible to legal action these days. Fortunately, there are some basic and reasonably priced insurance policies for even small business owners to consider to protect themselves should they have to go to court. These are product liability insurance, general liability insurance, error and omissions insurance, worker's compensation insurance, and commercial auto insurance.
Product liability insurance protects the business and its owner if someone should be injured by one of the business' products. This could include injury or extreme inconvenience from the product itself, or perhaps a problem related to a part of the product or the product packaging. The first step in preventing this problem is to manufacture quality items that meet safety regulations, but is a good idea to have insurance to back up the company just in case. Sometimes freak accidents can occur with even the safest product, so it is important to be prepared. This insurance will help pay for court fees and any payments that result from legal action.
General liability insurance is similar to product liability, but it covers the business in general rather than just the product. The insurance could cover similar monetary obligations resulting from a court case of complaint. It is important to examine the coverage of one's particular general liability so that they are sure about what parts of the business are covered and what parts might require additional coverage.
Error and omissions insurance protects the company from human error mistakes. These can occur in a number of places, including during transactions, when building products, or providing services. The error may be made by an employee, by the business owner themselves, or as a result of neglect. This is good insurance to have because everyone is subject to making mistakes.
Worker's compensation insurance is required by each state. The amount and type of coverage required will depend on the each individual state's requirements, so it is a good idea to brush oneself up on the laws surrounding this coverage. This insurance will protect the business and make payments for medical care should an employee become injured while on the job.
Commercial vehicle liability insurance is something that people often overlook. This coverage includes any vehicles operated on the company's behalf. Even if the vehicle is already registered with personal insurance, commercial coverage is still a necessity that protects the driver and business owner in case of an accident.
Insurance is a necessary and useful tool for businesses of all sizes. These five policies should be considered essential and considered by every business owner.
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