A Look At Business Insurance
One of the responsibilities of being a business owner is maintaining sufficient business insurance to protect against unforeseen loss, including losses due to employee related matters. Below is a brief overview of the available policies and what they are intended to insure.
Property Insurance - Protects against loss to the building location and its contents, and can include the contents of other people while in the performance of their duties, or on break. It can be written to insure only specific risks such as a tornado, yet the building burns, then the loss might not be covered.
Casualty Insurance - Insures against loss or damage to the business, but can be combined with Property Insurance which can provide a substantial savings on the premiums involved. Much of the separate coverage overlaps, making it possible to reduce premiums by simply packaging the two together for a single payment.
Liability Insurance - This type of policy insures against loss due to any legally imposed liability caused by the negligence of the business or any of its employees. It is simply the policy that would provide protection when the business is sued for negligence.
Commercial Auto - Personal Auto Insurance does not insure vehicles owned by the business. Commercial Auto insurance does cover the business vehicles for any loss to the vehicles, themselves, or damage caused by those vehicles to other property not owned by that business.
Workers' Compensation - This type of policy is intended to protect the employees in the event they suffer an on-the-job injury. There are many possible facets to this type of policy, but it is for the purpose of making prompt payment for any medical bills and damages an employee might suffer while they are at work. This is not to be confused with typical medical or health insurance plans.
Business Interruption - This policy insures against damage caused by nature that results in disruption of business cash flow. If a machine makes Gidgets, and is struck by lightning, then not only is the machine damaged, but there will be a delay in being able to resume the manufacturing of Gidgets. That loss of cash flow is protected under a Business Interruption policy.
Health Insurance - Most businesses realize that if they need employees they will have to be competitive with other businesses and provide a health insurance plan that provides the employees, and the business owner, with medical coverage in the event they should need medical care. There is usually a Deductible required by the insured, and a percentage of the total expense is to be paid by the employee. There are plans that provide both in network and out of network participation, and some restrictions could apply.
Life and Disability - This kind of policy protects against the loss by death or dismemberment of key personnel, and can be written so that another partner will be named as beneficiary. Should such a situation of death occur, the surviving partner can use the money to buy out the shares of the deceased partner.