Introduction to Business Insurance
1. What is Business Insurance?
Business insurance is insurance coverage for a business. The same as you would get insurance for your house or car, you also need it for your business. It protects you and your business from potential lawsuits, mishaps and destructive acts of nature. Business policies are expansive and flexible in order to fit various business situations.
2. Who Needs this Insurance?
Any company with assets to protect needs insurance coverage. Assets include several things, such as land, buildings, inventory and even employees.
3. How Does the Insurance Work?
Business insurance is the same as other insurance, in that it pays out following certain incidents. Simple business policies can follow a template; however, some situations are too complicated for a simple template. The bigger the company, the more complicated the insurance package.
4. Types of Coverage
Business insurance offers flexibility in order to meet various demands. The following are a few things you can include in your business insurance policy.
Worker’s Compensation – This coverage protects employees who are injured on the job. It protects businesses from bankruptcy due to paying employee medical expenses.
Business Owner Policy – A BOP is a one size fits all package for companies who need a simple and inexpensive policy.
Directors and Officers Insurance – This coverage is for directors and officers in the event their actions affect the profitability of the company in a negative way.
Data Breach – Companies that rely on data, such as credit card companies, may need this coverage to protect their assets.
It is beneficial that business insurance can be tailored to fit specific needs. A business can choose only what they need to protect what is relevant for their business. These policies are the most efficient of any insurance package on the market.