Business Insurance - And What You Need To Know
Getting your business up and running is exciting, challenging
and hard work. You're finally making money - and you are the
driving force that is making your business grow. But have you
taken care of the "What ifs". Like - "What if I get sick, how do
I pay my bills" or "What if I have a fire, how do I keep my
business running". Simply put, the one thing you do not want is
to have the business that you have labored so tirelessly on, hit
a financial snag.
If you are a sole proprietor or a partnership - both your
business and personal liabilities are at risk. Do you think
you're safe if you incorporate or have an LLC? Many are misled
into believing this is so, however, you too can become
personally liable if you sign a personal guarantee on a loan,
personally injure someone or act irresponsibility. As you will
see, owning business liability insurance can and does protects
your business and personal life from financial ruin. My
discussion here will be limited to Business Interruption,
Overhead, Umbrella Liability and Liability Insurance -
explaining what these four types of insurance are, and what they
can offer you and your business.
Business Interruption Insurance
Business Interruption Insurance helps to insure against any
economic losses that you may encounter if something should
happen to close down your business. For example, you have a fire
in your corner of the house - your business office. Your home is
covered for property damage - thus, the rebuilding is covered,
however, what about the lose income you're losing while you
rebuild? That's where Business Interruption Insurance can come
in to play.
Overhead Insurance
There is one type of business insurance that you may want to
consider when your business is making a good profit, and that
would be Overhead Insurance. Overhead Insurance covers rent,
salaries, utilities, insurance premiums and/or interest payments
that are related to the business - this type of insurance would
cover you in case of a major illness or accident.
Umbrella Liability Insurance
Umbrella Liability Insurance is used for catastrophic losses.
This will protect you in the event someone wants to sue you. An
umbrella policy will upgrade your basic auto, homeowners or
business insurance to cover these unforeseen events.
Liability Insurance
If you have people coming to your home-based business, than
liability insurance may be something you should look into it.
Liability insurance will cover you against claims made by others
against you for injuries or damages that occurred on your
property.
Yes, your homeowner's policy includes some liability insurance,
but it may not cover you for liability claims caused by your
business.
To conclude, life offers many unexpected turns in the road - and
basically, that's what all insurance does - it protects you
against those unexpected bumps in the road - and keeps you
moving toward your goals with only limited stales. Personally, I
believe I can deal with a small bump in the road better than a
complete halt in business. How about you?
To your success.