Business Insurance

Thursday, August 23, 2012

Business owners should have their businesses insured.  For the benefit of business owners, non-business owners and aspiring entrepreneurs this article will discuss the various different types of business insurance and the advantages that insured companies have over their uninsured counterparts.

The Types of Business Insurance:

  • Property insurance: Theft, vandalism, accidents, severe weather and fire are all elements that threaten the physical property of a company. The property includes vehicles, offices, warehouses, computers, machinery and merchandise.  If any of these items are damaged, an insured business can claim the damage from their insurance company. This removes the risk from the business and transfers the risk of losses of their physical property to their insurance companies.

  • Health and life insurance: Companies should provide their employees with both health and life insurance. The employees should be allowed to choose what type of coverage they need, but it should at least cover them against accidents, illness and for hospital visits and medication. They should also be allowed to choose their beneficiaries from life insurance.

  • Workers' compensation: This type of insurance covers employees against disability or possible harmful medical effects of their jobs. These include, for example, factory workers who lose their hearing due to the noise in the factories, workers who develop lung cancer due to breathing in harmful chemicals at work and those who have accidents on the company premises.

  • Liability insurance: This covers a company against damages claimed by their customers for faulty products or poorly performed services.

  • Crime insurance: This covers a business against such items as employee fraud, burglary and arson.

The Benefits of Business Insurance:

  • Businesses are protected and insured financially if such an insurance event arises.

  • Employees may feel more secure in an environment that is insured.

  • Financial institutions may require businesses to be insured in order to lend money.

  • Insurance premiums may be tax deductible as business expenses.

Better businesses have insurance.  It is a way to both protect the company and its employees or clients. 

Although there are several different types of business insurance, it’s best for a business owner to speak with an insurance broker to maximize the insurance the business will need.