Business Insurance

The hardline fact about coverage and businesses is that you need it. Everything you have for your business, from vehicles to basic liability, requires insurance. Without it, you could put everything you’ve built in jeopardy, open yourself up to crippling financial issues, or even be in violation of the law. But not to worry, here are some basics about coverage of your business that can help you get the protection you need to succeed.

Types of Business Insurance

The first thing you need to understand about coverage and your business is the different types that exist. Depending on your business, you may need specific kinds of insurance. In general, business coverage can be broken down into three broad categories: insurance for owners or partners and key employees, coverage of business earnings and property, and liability insurance. Here is a breakdown of each different kind.

Insurance for Business Owners, Partners and Key Employees

If you own a business, you need specific types of coverage depending on how your business is set up. These can include, but are not limited to:

• Life insurance – This coverage protects your family if something happens to you. If you are the sole proprietor of your business, this insurance is key because business owners are personally liable for all the debts of the business.

• Disability insurance – In the event that you are injured or fall ill, disability insurance will provide you with an income for a specified amount of time.

• Partnership insurance or buy-sell coverage – If you have a partner in your business, this insurance will help you purchase your partner’s shares and continue running the business in the event of their death.

• Critical illness insurance – If you become critically ill, this coverage will give you a lump sum of money to help you through the situation.

• Key person insurance – This coverage protects you in the event of the death or loss of those employees who are most important to your business.

Insurance for Business and Property Earnings

On top of coverage that protects individuals, your business may also require the following types of insurance to protect its assets and earnings. Bear in mind that businesses run out of your home may require coverage beyond your home insurance. It is always a good idea to contact your coverage company to discuss running a business out of your home.

• Property insurance – This coverage covers any buildings or property owned by your business if it suffers damage or destruction from fire, earthquakes, avalanches and other such disasters.

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