Insurance is all about planning for the unexpected. We have found that understanding the nuance of business insurance is probably one of the most complex parts of running your own business and the key to navigating this complex terrain is to find an agent that you trust. There are many types of insurance products that are available for you as a business owner – knowing which ones are required, which ones are recommended, and which ones are simply a luxury is the best way for you to break it down…we hope the following will help you understand which are best for you.
- Property and Casualty Insurance is a policy that is required to protect you and your business from personal injury to a customer or someone on your property, fire, or natural disaster. It is often required by your lenders and is considered a best business practice to protect your assets.
- Product Liability Insurance is required if you manufacture parts or products. It will protect you from faulty parts that cause damage or personal injury.
- Life Insurance will provide financial security for your survivors or business partners in the event of your death. This is a tool that can also protect you if your business partner or a key member of your management team dies unexpectedly. Proceeds in the event of a death can be used to pay off debt, train new staff to perform, and keep the business functioning through a traumatic time period.
- Disability Insurance will provide you the financial security if you are injured and cannot fulfill your mental or physical responsibilities in your company. This is a policy that can be purchased for any key staff member in your business and is common in industries which are considered high risk. It is sometimes more important than life insurance.
- Business Interruption Insurance will pay you for any interruption in your business. An example would be if you had a fire in your business. If done correctly, the policy would help temporarily relocate your business or pay key employees during the time you are not operating – to ensure that they stayed employed or to ensure that your business continues to operate during the time of rebuilding.