Incorporating your business or forming a limited liability corporation is the first step in protecting your business and personal assets if something happens inside your business.
However, securing the right types of insurance is the next step you need to take to protect yourself and your firm. Here are a few tips on how to choose the right insurance for your business.
What are the General Types of Insurance?
Before you start shopping for insurance, you have to know the major types available. They can usually be divided into four main categories.
Business property insurance gives you protection in the event that business property (buildings, personal property, land, etc.) has suffered some sort of damage or has been destroyed. Business property insurance will usually be the one protecting you if you incur any loss in a fire or flood, for instance.
Business liability insurance will usually be what will protect you in the event someone happens to hurt themselves on your premises. Product liability insurance, on the other hand, will give you coverage in the event someone happens to suffer damages due to one of your products. When you’ll start looking for liability insurance, it would be wise to ask some business owners you know which type of coverage they have. Policies may have similar names, but they may not give you the same protection.
Business auto insurance is in many ways identical to your regular auto insurance, with the exception that it covers you when the car in question is being used for business. This is usually what will cover you if you or one of your employees is involved in an accident with one of the company’s cars. And if you take comprehensive coverage, you will usually be covered for things like theft or fire.
Business umbrella insurance will be used when you have claims that exceed the limit your other insurance can’t provide cover. Business umbrella insurance will act as an extra layer of protection and cover for any extra damage expenses. Umbrella insurance also often provides protection for events other insurance types don’t cover.
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