The Different Types of Business Insurance

In the UK there are many different types of Business Insurance. It’s because of this diversity that the options available can sometimes be confusing. So for a new business that has no staff or an existing enterprise with teams of employees it’s important to decide what level of insurance you must have and those that are advisable.

Here is a list of 16 different types of Business Insurance you might consider.

Employers’ Liability Insurance – The Employers’ Liability (Compulsory Insurance) Act 1969 requires that employees be covered against injuries whilst doing their job – Mandatory.

Motor vehicle insurance – Most business policies are comprehensive or third party, fire and theft. Legally you must, at least, insure your legal liability for injury to others and damage to their property – Mandatory. If you use private vehicles for business use, make sure the relevant policy accounts for this.

Professional indemnity insurance – Protects businesses against injury, loss, or damage, arising from their professional negligence or that of their employees. Depending on your industry certain profession MUST have insurance, these include; architects, accountants, solicitors, surveyors, insurance brokers and financial advisers.

All of the following types of Business Insurance are recommended.

Business travel insurance – Some employees travel extensively around the world. Cover against delays, loss of life and injury; equipment and money is recommended.

Fidelity guarantees – If you are worried about dishonest employees Fidelity Insurance covers against loss of cash or stock.

Key Man insurance – Some businesses would cease to function properly without certain individuals. It’s not uncommon to insure Directors and senior managers against the loss of income from death.

Premises insurance – Much like home insurance your business premises should be insured for the complete rebuilding cost.

There are two types standard and “all risks”. Talk to your broker about what level of cover you might need.

Contents cover – If you business holds any type of stock you might consider business contents insurance.

Plant and business equipment – Much like contents insurance, you can insure your machinery or business equipment.

Goods in transit cover – This is a popular insurance if you are looking to dispatch high net worth items. The post office always asks the value of your item being sent. Goods in transit cover operates in the same way.

Engineering insurance – Engineering insurance covers against electrical or mechanical breakdown.

Business interruption insurance – The riots in London in 2011 resulted in claims for disruptions to your business. Claims for loss of income and expenses would be likely.

Public liability insurance – This is a very common policy that covers your business from damages to members of the public, either for death, injury or property damage.

Product liability insurance – If you sell a product you need to consider carefully whether that product may harm an individual due to defects or negligence in manufacture. If so, you need to talk through the risk with your legal adviser.

Pollution risk insurance – Pollution is taken very seriously by the Environment Agency. If your business is caught polluting the environment you could be liable and fined and forced to pay to clean it up.

Directors and officers insurance – Company directors and officers have specific duties and responsibilities, for which they can be held responsible. Directors and officers insurance provides cover for compensation and legal costs, if they are found to have inadvertently acted outside their terms of reference.

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Mistakes to Avoid While Purchasing Business Insurance

Every business, whether small, medium or large, is exposed to risks. You can rule out these risks by purchasing business insurance which covers for the loss of revenue. You should, however, choose the right insurance which is suitable for your business. This article discusses mistakes that you should avoid, while purchasing business insurance.

Right insurance protects your finances:

Irrespective of the size and type, every business has the possibility of facing risks; they can either be man-made or natural. Natural risks include floods, heavy rains, violent winds (storm, gales, hurricanes and the like), lightning and the manmade risks include vandalism, theft, accidents at workplace resulting in casualty, loss of business data, inadvertent leakage of data and so on.

To choose the most suitable insurance for your business, taking into account the nature of your business is very important. While purchasing business insurance, you need to consider things like products/services you offer, the customer base, availability of raw materials, whether the product needs new design/method, or any other issue that may potentially be a risk factor for your business.

Purchasing business insurance is a sensible decision in favour of your business. It is also important that you should avoid the following mistakes while purchasing the insurance.

Underestimating the importance of business insurance:

Every business has its own risks. You should not underestimate the risks your business may face. However small the risk is, you should purchase the right type of insurance for your business. Purchase the insurance even if your company finances are good enough to withstand the risk.

Getting attracted to low priced policies:

Don’t mistake low priced policies for cost effective policies. The low premium might be because the risk it covers is low. If this is the case, it might be troublesome to you in the event the expenses of compensation exceed your policy cover. You need to take an insurance cover that is, sufficiently more than the probable claim for compensation.

Avoid purchasing a smaller cover for your business. In case of higher deductibles, you will have to spend a huge amount from your pocket. A deductible is an amount that the policy holder has to pay before getting compensation from the insurer. The deductibles are small and lead to lower premiums.

As a thumb rule, check out for all the aspects such as, the cover for building (where your business is located), Employers Liability Insurance, as per rules of government from time to time, regardless of your size, type, hazardous nature, location of your business.

Under or over insuring:

Avoid under insurance, it may lead to considerable loss to your business. This is because under-insurance cannot cover all the expenses that you have to bear in the event of claim. Purchase an insurance cover that is adequate for your business.

Over insurance will also not help you. It leads to more expenses. At times you might be tempted to buy business insurance that seems less expensive. But, in reality the insurance cover that is less expensive may not cover the type of risk that your business may face.

Buying insurance from brokers/agents with no/less knowledge:

Purchasing insurance is not an easy task. It requires great deal of research. Choose brokers/agents who specialise in business insurance. Ensure you choose the ones that have good track-record in claims settlement and servicing the users.

Consider purchasing insurance from brokers. Look out for an insurance broker with great experience and repute, and who can provide you the best service at optimal costs. You should avoid brokers/agents with lower credibility.

To forge an optimal deal for your business, choose a reputed brokerage firm. Such brokerage firms deal with a range of insurance products, and are knowledgeable. Brokerage firms deal in insurance products of all insurers, claim settlement, application and submission procedure.

Protect Your Assets With the Right Business Insurance Coverage

A single spark can set a store on fire. A simple slip can lead to a long and expensive law suit. You can wake up the next day and your corporate car is not on its parking slot. If there’s one thing every business owner knows, it’s the fact that there’s nothing certain and it’s important to reduce risk to the very minimum.

Many business owners fall into the trap of not getting the appropriate business insurance coverage. Let’s dissect that statement further. It is not enough to ensure your business. Commercial business insurance should be your failsafe. Meaning, your business cover should be something that encompasses all possible scenarios.

Identifying All the Risks Associated with Your Business

The first step in determining the right business insurance for your enterprise is conducting a thorough audit of your entire business operations from start to finish. Make sure that no stone is left unturned. If you’re the owner, there’s a high probability that you may not be aware of everything that is happening in your daily business operations, so it is best to bring in all your managers as well as the key employees to ensure that you don’t miss anything.

Knowing the Different Types of Business Insurance

There are four major broad types of commercial business insurance.

The first category is probably the most common – business property insurance. Simply put, this type of insurance will give you monetary reimbursements, if your business properties (i.e. Your office, your machineries, etc.) were damaged or destroyed.

The second general classification of business insurance is liability insurance. If you injured a person or damaged a property during the conduct of your business, this type of insurance will take care of that. For example, if you’re a restaurant owner, and someone slipped within your restaurant because of a spilled drink, you can use your liability insurance to cover for the victim’s hospitalisation expense.

Third is the automobile insurance which is basically similar to your personal car insurance. It will cover the damages inflicted on your company-owned vehicles including those resulting from collision accidents.

Lastly, the umbrella commercial business insurance does not play a specific role. Rather, it extends the limits of your other insurance policies. It may also be used to cover other things beyond those which are covered by your liability, property and automobile insurance policies

Sufficiently Investing Towards Your Insurance Policies

By identifying all the areas in your operations that may cause financial losses to your company, you will be able to identify which types of insurance you need. Aside from selecting an insurance category, you likewise need to ensure that you are investing enough towards these business insurance policies.

For example, if you run a hotel business with several luxury cars to transport your guests, you should invest heavily on automobile insurance and the policy you should get should have a high premium. You can’t have a $30,000 BMW luxury sedan and just have $5,000 worth of automobile insurance.

5 Types of Business Insurance and Why You Need Them

No matter the size or nature of your business, one thing that remains the same is the need for business insurance. There are many different aspects of your business that you’ll want to take into consideration when looking for new business insurance – or reviewing your current insurance coverage. Since every business is different, each one will have different insurance requirements. For example, a company that produces physical goods may need different insurance than a company which offers services. In either scenario, there are some similarities, and listed here are a few types of insurance that all businesses should consider.

Workers’ Compensation Insurance – for your employees

Workers’ Comp insurance is required by law in almost every state. It can provide coverage for medical costs and a portion of lost wages for an employee who becomes injured or ill on the job. Typically, this type of insurance only covers injuries or illness that occur on the job site – for example, if an employee slips and falls on a wet floor.

Since the laws regarding Workers’ Comp can be different depending on where your company is located, it’s important to work with an insurance professional to make sure you’re getting the coverage that’s required, as well as what you need for your particular business.

General Liability Insurance

General Liability Insurance is designed to protect you and your business from a variety of claims, including accidents, injuries, or claims of negligence. This type of insurance can help pay for things like property damage, medical expenses, libel, slander, legal costs, and faulty products. No one expects to get sued, but the reality is that it’s always a possibility. You don’t want to leave your business open to these types of situations, and the broader the protection, the better.

Professional Liability Insurance – “Errors and Omissions” coverage

Professional Liability Insurance can also be known as “Errors and Omissions Insurance,” or “Malpractice Insurance.” It protects you from lawsuits that allege negligence in providing professional services, providing shoddy work, or making mistakes or omissions. This type of insurance is particularly important if you have a service-based business, but can also be necessary for other types of businesses as well. Mistakes happen – so adequate Professional Liability Insurance can be helpful, even if you don’t think you’ll need it.

Property Insurance

The definition of “property” is broad, and can mean different things to different types of businesses. That’s why it’s important to make sure you carry adequate Commercial Property Insurance. Without this type of insurance, most small businesses wouldn’t be able to replace their equipment should something happen to cause damage or destruction. Property covered by this type of insurance can include buildings, computers, inventory, supplies and equipment. There are two types of Property Insurance: “all-risk” policies cover just about everything, and is a good way to avoid duplication or overlap of coverage, as well as gaps in trying to cover your liabilities. “Peril-specific” policies, or “named-peril” coverage applies only to particular perils that are specifically named in the policy. They’re usually needed when there is a high risk in a very particular area.

Life Insurance / Key Executive Insurance – protection and benefit

Offering life insurance for employees can be a valuable benefit when trying to attract high-quality employees. A business can even offer additional coverage for executives. These employees are deemed to be crucial to the running and success of the business, and may sometimes require additional insurance, above and beyond what the normal employee benefits provide. This can be another benefit in attracting top talent.

A business can also offer special “Key Person” policies for employees without whom the business could not function. Key Person Insurance protects against a key employee’s unexpected death – often times the benefit amount equals the expected revenue loss and costs required to find and train a suitable replacement. The business pays the premiums, and the insurance is considered a business asset.

It’s possible to combine some of these basic coverages as a package policy, often referred to as a Business Owner’s Policy, or BOP. Many insurance companies bundle certain coverages, and this can save you money, as long as you make sure you get the proper type of coverage.

Questions To Ask Your Small Business Insurance Agent When Purchasing General Liability Insurance

Commercial general liability insurance is one of the most commonly purchased types of small business insurance. But many small business owners still have lots of questions about what it is, why it”s needed, and how it works. Here are answers to the top five questions we hear from our small business clients about general liability coverage.

1. What does general liability insurance cover?

General liability insurance covers claims of bodily injury or other physical injury or property damage. In the event of a covered lawsuit, such policies will typically pay for a legal defense as well as compensatory, general and punitive damages.

A typical general liability insurance policy covers:

– Bodily injury and property damage liability: If a visitor is injured on your premises, or you or your employee injures some or damages property on your client’s premises.

– Personal and advertising injury: Certain offenses you or your employees commit in the course of your business, such as libel, slander, disparagement or advertising copyright infringement.

– Medical expenses: Applicable medical costs if someone is injured and needs medical treatment due to an accident on your premises.

– Premises and operations liability: Bodily injury and property damage sustained by others at your premises or as a result of your business operations.

– Tenant’s liability: Claims of damage due to fire or other covered losses caused by you to premises that you rent.

Please note that this list includes typical coverages afforded under some policies. Be sure to examine your own policy carefully for any exclusions, limitations, or any other terms or conditions that may affect your coverage. The terms and conditions of your policy will prevail.

2. Why do I need general liability insurance?

Even if you don”t expect to ever face a claim, general liability insurance is a smart, inexpensive investment in your company”s future. Accidents do happen, and people who are injured or whose property is damaged will expect compensation. Although such accidents may be no fault of your own, you”ll still be held financially responsible for them, and it only takes one such incident to break the bank for most small businesses.

In the event of certain types of lawsuits, even if you feel you”re not at fault, you”ll likely spend a hefty sum trying to prove it in court. For covered suits, general liability insurance pays for a legal defense and any settlement award, up to the limits specified by the policy.

Additionally, many client companies will have contract requirements that mandate that their business partners or vendors carry general liability coverage. Such contract requirements protect the client from incurring any costs in the unlikely event that someone or something should be injured or damaged in the course of your business relationship.

If you”re still not sure if you”re one who needs general liability insurance, there”s no cost to speak with an agent or broker for advice and a no-obligation quote.

3. How do I determine how much coverage I need for my business?

Your insurance agent or broker can help you assess the potential liability for your business, which varies depending on the type of industry your business engages in, as well as other factors.

Your location is one consideration, as courts in some states have historically made higher damage awards than those in other states. Businesses in those states may wish to consider carrying general liability insurance with higher coverage limits.

Lower-risk businesses, such as accounting firms or IT consultancies, may feel comfortable with lower coverage limits, while businesses in higher-risk fields, such as construction, may need more coverage. For small businesses with less risk, a combined general liability and property insurance package may be a cost-effective option. Such dual policies are known as a Business Owner”s Policy or BOP.

4. I”m worried that the coverage limits on my general liability policy aren”t high enough. What can I do to be sure I have enough coverage if I get sued?

If you”ve got a $1 million general liability policy, but you”re worried that you”ll be sued and your legal costs and court-ordered settlement could be even higher than $1 million, you may wish to purchase an excess liability insurance policy. What is this type of insurance? Also known as umbrella insurance, excess insurance is an inexpensive way to provide additional coverage when the limits of insurance on an underlying policy are exceeded.

For instance, if you have $1 million in general liability coverage, but a court orders you to pay $1.5 million in compensation, the right excess insurance policy would pay for the difference of $500,000. In addition to general liability policies, an umbrella insurance policy also adds coverage to your hired and non-owned auto liability and employer’s liability insurance policies, at no additional cost. However, umbrella coverage does not apply to professional liability insurance.

For contractors and consultants, some clients require excess liability insurance in their contracts to ensure that their vendors are financially capable of paying a large damage award in the event of a lawsuit. Client contracts may also require other types of insurance, such as professional liability or workers” compensation.

5. How can I reduce my risk of having to file a general liability claim?

While it”s good to have general liability coverage, it”s even better when you don”t have to use it. There are several ways you can cut your risk exposure and reduce the chances that you”ll face a lawsuit:

– Provide proper training for all employees and subcontractors.

– Institute safety policies, processes and procedures appropriate for your line of work.

– Inspect your place of business for hazards that could result in injury.

– Maintain your office space, furnishings and equipment in top condition to reduce the risk of injury or property damage.

– Ensure that smoke detectors are operational and emergency exits are clearly marked and unobstructed.

– Restrict access to hazardous areas or equipment to authorized personnel only.

Ask your insurance agent or broker for additional tips on how you can reduce your risk.

Business Insurance Is Not An Option, It Is A Necessity

A woman walks into the restaurant you own, and is tripped up by a nail sticking out of the floorboards. She seems fine, but a week later she is back with an attorney and a neck brace. Apparently she hit her head in that fall, and isn’t doing so well. Or perhaps you are a mechanic and a customer wandered into your shop and cut his leg. Perhaps you own a pet store and a little girl got a nasty bite from sticking her fingers in the mouse cage. Whatever your business, liability is just a part of the cost of doing business.

It is almost impossible to run a business without liability insurance, and in many places it is a legal necessity as well. Business insurance covers liability cases so that a risk you cannot afford (like paying someone else’s medical bills) is replaced by one that you can afford (such as a monthly premium).

Other types of liability include fire legal liability, which means that you are the liable party in the case of a fire. If you forget to turn of a space heater before you head home for the night and this results in damage to your landlord’s property, then you are liable and the damages are covered by the fire legal liability part of your business insurance.

Liability is not the only type of insurance to be covered by business insurance. Business insurance can also function like a home owner’s insurance policy for the office, protecting the building (if you own it) and the equipment and possessions that are inside. What responsible homeowner does not have his home protected against fire? Shouldn’t the same precautions be taken for your business as well?

If your business were to be destroyed, a business insurance policy would cover things like desks, chairs, seating in your reception area, computers, equipment, and anything else of value that is a part of your business operation. Business insurance can also provide coverage against things like loss of income, earthquakes, and in some areas even flooding.

If a natural disaster takes your business away from you, then your business insurance policy is there like an umbrella, helping to protect you and your family from the losses and breaking your fall, so to speak. Your business insurance policy is there to help you rebuild and go on with your life.

If you are an employer, you are also required to have worker’s compensation insurance. This insurance protects you in the event that one of your employees in injured on the job. Your insurance will pay for treatments for your injured employee.

Other insurance might include insurance for your company vehicles in the case of an uninsured or underinsured driver, health insurance for yourself and your employees, and life insurance. Taking good care of your employees and offering benefits to them is a sure way to attract and keep the best employees possible.

One little accident could just about destroy a small business unless that business is insured against the disaster. If you could prevent an emergency situation, why wouldn’t you? Taking care to make sure that your business is insured properly and thoroughly is only one step toward running a successful business, but it is a vital one. Insurance is not an option, it is a necessity.

A Brief Guide To Online Finance Degrees

Online degrees are gaining popularity because they are flexible, accessible and convenient. However, if you plan on getting a finance degree online you need to make sure that Moreover they are also acknowledged by most of the employers provided they are pursued from accredited online universities. You can opt for various levels of degree programs as well as certification programs completely online without discontinuing your existing job.

Types of Online Finance Degrees

Different levels of degreesin finance can be pursued online; this includes undergraduate, bachelor’s, master’s as well as Doctorate Degree in Finance. You can even consider various types of specialization to develop niche careers. Some online colleges even offer a combination of accounting and finance degrees.

Some of the most popularOnline Finance Degrees are:

>Online Finance MBA Programs
>Online Finance Certificate Programs
>Bachelor of Science Finance
>Bachelor of Business Administration Finance
>Master of Science in Finance
>Master of Science in International Finance

Choosing an Online Finance Degree

If you are interested in a specific career in the field of finance, you can consider different levels and types of Online Degrees in Finance. They can help you to develop lucrative careers like finance analyst, finance manager or budget manager. However, while choosing an Online Finance Degree at any level, you should look for credible degree programs. You should conduct adequate research and develop a list of accredited online colleges which ensures quality online education.

You can find out about its accreditation from various accredited agencies which are recognized by the U.S. Department of Education. With these accredited degree programs, you can develop a lucrative career in the field of finance. This can enable you to get jobs in various work settings like private banking, financial planning, insurance or investment management.

Curriculum for Online Finance Degrees

The curriculum for an Online Finance Degree is one that can help you to develop a strong foundation in the field by gaining business skills along with gaining knowledge about different areas related to the field like finance, marketing, management, economics and statistics. You can also get in-depth understanding about various aspects of the field like risk management, related concepts, different strategies, investment and banking and financial markets.

The basic curriculum for different types of Online Degrees in Finance includes subjects like:

Financial and Intermediate Accounting
Cost Management
>Business and Finance
>Mathematics and Statistics
>Money Markets
>Commercial Finance
>Fiscal Accounting
>Financial Administration
>Insurance
>Global and Domestic Business Finance
>Introduction to Economics
>Investment Banking

An Online Finance Degree offers a lot of benefits and can help you to get experience as well as pursue higher education without leaving your existing jobs or compromising on other family commitments. You can pursue it at your own schedule and pace and can take it up from anywhere and at anytime.

In these times of uncertainty, a finance degree pursued from a top university is one of those few careers that still promise a good salary and a prestigious job.

The Future Of Finance Jobs

In the not so long-gone past, many career advisers were advising young people seeking to start out a career to go into finance. The financial markets were doing well then, finance jobs were in plenty and MBA schools were bursting with young students seeking to build a career in finance. And the finance jobs were, of course, not limited to the financial markets. With a strong economy, finance graduates who couldn’t get jobs in the financial markets and investment banks could quite easily be absorbed into commerce and industry accounting jobs. Other would get middle office finance jobs in the public service, and going was good.
Then the bubble burst.

The economy went into recession mode, the financial markets shrunk and finance graduates who had taken up jobs with investment banks found themselves facing the axe, as the investment banks are the worst affected by turmoil in the financial markets. And as if on cue, companies, in a bid to cut costs, were also cutting on their head counts, thus also shaking the fortunes of the finance graduates who found commerce and industry accounting jobs in the private sector. In the midst of all this, it seems that the only secure finance graduates are those who took up middle office finance jobs in the public sector, but even this is not fear-proof for we do not know for sure what the full effects of the economic turmoil will be on civil service staffing.

So in the face of all this, what is the future of finance jobs?
It might seem counter-intuitive to say, but the future of finance jobs is still bright, in spite of the current turmoil in the financial markets. As it were, economists tell us that the current economic turmoil is largely short-term to medium term, which is to say that it won’t be with us forever. Which means that the people who chose to pursue a career in finance need not regret their choice, as better times are coming. But even before the better times arrive, the people with finance backgrounds who are currently getting laid off might not find themselves in the cold for too long.
As governments unveil the various economic stimulus plans, there will be need for people to manage the money as it goes into various sectors which translates to some finance jobs. Of course the finance jobs created in this way will be for the best brains in finance.

And then there is the fact that all companies, like human beings, have a native survival instinct, which they are likely to find handy in these hard economic times. One survival strategies for companies in crises is to hire the experts who are likely to navigate them through the particular crises. And since the current crisis is financial, the companies are likely to find themselves hiring financial experts to help them address the economic crisis. Of course, the companies are not likely to be overtly looking for finance experts to help them address the financial crises. What we are likely to see is an increase in commerce and industry accounting jobs, but the accountants so hired are bound to be almost exclusively tasked with cost and revenue management tasks, geared towards helping their employers sail through the turbulent times successfully.

And finally the good times will surely come back again. If the history of the financial markets is anything to go by, we know that all bursts are always followed by booms.

How Can You Finance A Mortgage?

Most homeowners purchase their houses through mortgage finance or a loan. There have been many changes in home mortgage financing and loans in the past ten years, bringing many benefits to homebuyers. These changes also bring some significant tradeoffs. The greatest benefit a homeowner received from the changes in mortgage finance is that there are more choices. More choice means a homebuyer can effectively shop around for the best mortgage finance deals and make better decisions.

There are a number of specialized mortgage finance institutions that provide mortgage finance products. Savings and loan mortgage finance institutions are also known as thrift associations, since lenders take the deposits of their customers and use the money to create mortgage finance and loan products. Thrifts declined during the 1980s when interest rates were erratic, and mortgage failures were at an historic highpoint. Thrift institutions were replaced later on by mortgage finance bankers, who originate the mortgage finance product and offer them to investors. In the 1990s, mortgage brokers arrived on the scene. These are freelance mortgage finance agents who handle loans for a number of lenders and sell them to several clients that may include investors or homebuyers. Mortgage brokers remain popular with homebuyers who are looking for mortgage finance advice. Because these brokers have relationships with several lending firms, they represent the best source of mortgage finance advice concerning the current real estate market. Another good source of information for homebuyers who are looking to make a final mortgage decision is the Internet.

The general rule in the 1980s was that only individuals with good credit could obtain a mortgage finance loan. In the current market, nearly anyone can apply for such a loan if they want to buy a house. If you have excellent credit, you will probably find a mortgage finance loan that covers the total purchase price of a home. Having bad credit does not necessarily mean that you will not be able to get a mortgage finance loan, however. It is still possible, but you will pay a higher interest rate. Homebuyers who are getting their first house and how do not yet have a credit rating also have mortgage finance loan options available to them. These loans typically have low down payments and flexible standards defined in the underwriting.

The loan approval process has been made much faster because some of the underwriting has been streamlined. Computers have allowed mortgage finance loan information to be accessed rapidly, In fact, some finance companies offer approvals online or by using computer programs. The concept of credit scores” has also led to a decrease in the number of finance loans that are rejected. Credit scores can offer some relief in usually strict mortgage loan approvals, so applicants have less of a problem.

The modern mortgage finance market has developed a number of new mortgage products as well. When interest rates began to fall, homeowners took advantage of the decreases to refinance their mortgages. In order to reduce the expense of refinancing, lenders than began to offer mortgage finance loans without discount points.

Understand Business Insurance For Small Business

Many small business owners rely upon their personal insurance to cover their small business. This is, especially true, of home business owners. However personal insurance is not designed to cover a business, and if you do need to make a claim, you may find yourself under insured, or even uninsured!

For instance, your home property insurance may have a limit of a few thousand dollars for the contents of your home. If you have computers, other business machines, or especially, business records, a loss can be much larger. It would be tragic to have an accident or damage to your home that also destroyed your business assets, and then to find that you cannot make a claim to cover your business loss.

Another common example is for auto insurance. If you bought a personal insurance policy several years ago, you may not remember the mileage or use you claimed. If you claimed that your mini van was only used for errands and soccer games, and then had an accident while using that vehicle to transport business supplies, the insurance company may have a reason to deny the claim!

Many small business owners even allow employees to use their personal cars for business. But if an employee is involved in an accident while doing your business, can you rely upon their auto insurance to cover it? This is a risk you probably do not want to take.

Now you may be able to go back and adjust your personal auto insurance policy to include business use, or you may need a commercial insurance policy.

And if you do business, you are always vulnerable to liability claims. If you do not have proper business liability insurance, one cliam can ruin your business. Even if your business is innocent, the cost of lawyers can run into thoousands of dollars. When you have a liability policy, you also have an insurance company who will work on your side to fight claims.

You really need to look into the common types of business insurance. Commercial car insurance, business property and liability insurance, and if you have employees, workers comp insurance, are three policies you should look into.

If your business depends upon the talents of one or more key employees or partners, a key man life and disability policy can protect you from ruin in case of a death or accident. Personal group life insurance provides a benefit that will attract and retain quality employees too!

And of course, we can hardly talk about business insurance without talking about group health plans. Now if you are the only employee of your small business, you will not be able to get a group health plan. You must take out an individual policy or rely upon a spouse’s health plan.

However, if you have two or more employees, you can find group health insurance. You need to look into the need for a business health benefit plan. A good group health insurance plan can be the one benefit that qualify employees are looking for, but it can also be a major expense for your business.