Let's talk about business owners policies.
If you do work for others as a contractor or have an inventory of items to sell, you need to make sure you and your business are covered. Your agent should work with you to determine your specific needs.
Most small businesses need to purchase at least 4 types of insurance.
1- The first is property insurance. This will cover the business if the property used in the business is lost or damaged as a result of common hazards such as fire or theft. This will not only cover the building but the personal property such as the office furnishings, inventory, raw materials, machinery, computers, and other items vital to the business operations.
2- Second, liability insurance. Keep in mind ANY enterprise can be sued. Customers can claim that a business caused them harm as a result of a defective product or error in service. Liability insurance pays damages for which the business is found liable - up to the policy limits - as well as attorney's fees and defense expense. It will also pay medical bills of anyone injured by or on the premises of the business.
3- Third, business auto insurance. This one is pretty straight forward - it provides coverage for vehicles owned by the business. It pays costs, up to the policy limit, to 3rd parties resulting from bodily injury or property damage for which the business is legally liable.
4- And finally, Workers Compensation. The requirements vary by state, but it is crucial to have coverage to pay for medical care and lost wages to an employee that is injured in the course of employment. This helps prevent out of pocket loss for the business owner.
What kind of insurance does my business need?
Written by Sullivan Insurance Agency on Jul 25, 2014