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Business Insurance

Business Insurance Explained

Insurance for Business is designed to cover businesses, owners and employees of businesses for losses of a financial nature. Operation a business is an expensive endeavor and obtaining good business insurance will, of course, add to those expenses, but the insurance provides the business owner worthwhile peace of mind due to the fact that the coverage can provide ample protection over such things as litigation due to a myriad of reasons or should the business property be damaged or even destroyed. This investment in a business shields it from unforeseen losses in the future, some of which can often destroy the livelihood of the business owner and employees.

There are a few kinds of insurance from which a business owner may choose. Ultimately, the business owner is best served by working with an insurance agent or broker to find out which policies are the most applicable to his or her business operation.

The following are the coverage for businesses most used:

• General Liability Coverage – This kind of coverage provides protection to business owners from loss due to a legal judgment. The formation of an LLC or corporation can protect businesses from many personal and general liabilities, but this coverage fills in where there are gaps.

• Product Liability Coverage – This is what can financially protect business owners from litigation stemming from bodily injuries that occur as a result of defective products. Companies that manufacture, offer wholesale products, provide distribution and retail sales are often exposed to product safety problems, so it is vital to obtain the correct amount of insurance to protect them.

• Errors and Omissions (E & O Insurance) Coverage – This coverage provides financial protection for certain business owners and their employers from legal action resulting from malpractice or negligence. In certain states, doctors are mandated to have E&O coverage along with those who work in the financial services sector.

By law, any business operation is required to have workers’ compensation and unemployment insurance coverage. Good worker compensation insurance gives financial payouts to employees who are injured on the job and rendered unable to work. Unemployment insurance gives monetary compensation to those who are laid off from their jobs. Other kinds of insurance coverage for business owners include life insurance and disability. Business owners are wise to consider the many risks involved in running a business and thereby purchase the proper level of insurance protection for the business operation and the workers.






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