12 July 2010

7 Different Types of Business Insurance for Your Business Needs

To reduce the financial risks brought about by unpredictable events like accidents, natural disasters, lawsuits, and so on, business insurance will be a great help. There are many types of business insurance. The cost in obtaining one will be different from one insurance provider to another. It is ideal that you ask for an insurance sales leads agent to guide you in choosing the best business insurance for you. Below are the different types of business insurance:

1. Worker’s compensation insurance
Worker’s compensation insurance is necessary for businesses with certain number of employees. It will cover the damages and medical expenses of your employees for on-the-job injuries.

2. Business interruption insurance
In cases when the business may have to be closed temporarily, this types of insurance helps support the business until it reopens again. It covers the damages and loss of the business’ calculated earnings during those periods.

3. Casualty or liability insurance
Casualty or liability insurance covers the loss and damages caused by acts of negligence or omissions. Meanwhile, it also covers lawsuit costs and settlement bonds if ever the problem goes to court. This type of insurance is best paired with property insurance, and is not particularly connected with life or health insurance.

4. Property insurance
On the other hand, property insurance insures an owned, leased or rented property, including its contents, against damage or loss from fire, theft, vandalism, and other disasters. It is important for you to recognize the details of your property insurance coverage needs because this type of insurance can be specific and applied to only one type of risk. It is recommended to choose the exact coverage you required since purchasing a few components of property insurance is more costly.

5. Auto insurance
Auto insurance is meant for vehicle used for business purposes. The cost of repairing any damage to the vehicle and to the other vehicles if an accident occurs is covered by this insurance.

6. Crime insurance
Basically, the damages and loss of the business against robberies and even employee theft is covered by crime insurance.

7. Business life insurance
This type of life insurance is particularly for businesses run by partnerships or corporations with some stockholders. The business life insurance insures the partners and stockholders of the business by dispensing money to purchase the portion or business interest from the family of a deceased partner or stockholder.

It is better to be prepared than to risk your business to any financial crisis. Business insurance is a sure back-up plan when business trouble arrives.

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Review by: Xaivier Chia

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Amit said...


ryan del villar said...

Very informative post. Businesses, may it be home based or huge companies are all vulnerable to unfortunate events. Home based businesses take much of the heat. That is the reason why acquiring a home based business insurance is like a necessity because even big companies do collapse.

Elisha Brewster said...

Great reasons why my business needs to be insured! Thanks for sharing!

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