One of the biggest fears of successful business owners is that an unforeseen catastrophe result in a lawsuit and, subsequently, ruin the business. Having insurance to protect the business can make all the difference. Learn more below.
There are various things that can cause financial damage or loss to a business. Business insurance protects both the business owner and the business against such losses. It provides the following types of protection.
Protects self-employed business owners
Protects against financial loss for the injury of death of an employee
Protects against lawsuits
Protects the business against disasters like theft, weather damage and fire
Depending on the type and size of the business, this type of insurance policy can offer various types of coverage. Business owners pay a premium to keep the insurance in force. The amount of the premium is determined by the amount of coverage. You may find the following types of coverage in a business-based policy.
Property insurance provides coverage again actual damage to the building or property. An example would be fire, hail or vandalism damage.
Liability insurance protects business owners against legal claims and will pay medical or legal expenses that may result from a lawsuit. Typically, business owners purchase liability insurance that covers every employee as well as any business-related vehicles they may use.
Worker’s compensation insurance pays weekly benefits to employees that become injured or disabled at work. If the employees dies, the benefits are paid to the family.
Health insurance, which is required in some states, provides health insurance to employees and their families. Typically, the employee pays part of the premium, and the employee pays a portion.
Business interruption insurance will provide the business owner with compensation in case income or profit is loss from a covered situation. This coverage may also help to pay the employees’ payroll or any monthly expenses.
Business insurance is beneficial because it allows a business owner to have confidence knowing the business is protected from some of the most common catastrophes or losses whether they’re caused by a lawsuit, a natural disaster or some other covered incident.