10 things to Know About Business Insurance
Business Insurance is different than personal insurance.1. Business Insurance is different than personal insurance.
You can not cover your business using any existing personal policies. When you start a new business, you will need separate business insurance.
2. Business Insurance is not just for big businesses.
Small businesses need protection too. Although business insurance can be expensive, there are excellent programs that provide protection for almost any budget.
3. There are many different types of business insurance.
Find out which types of business insurance represent the best protection for your business. See our descriptions of some of the most common types of business insurance below.
4. Liability Insurance is a good idea for home-based businesses.
Liability insurance protects you if damages occur or someone is injured on your property.
5. Overhead Insurance is a common form of business insurance that covers payroll, office rent, utilities and other necessities in the event you suffer an illness or become incapacitated.
6. Business Insurance is different for everyone.
You will likely have to mix and match a variety of different coverage types to get the total package that is right for your business.
7. Business Interruption Insurance helps you cover business-related expenses if you are shut down by a flood, tornado or other natural disaster. You can receive reimbursements for lost profits and ongoing expenses.
8. Umbrella Liability Insurance is the best way to protect yourself again lawsuits or other catastrophic events that can destroy all aspects of your finances. When you sign up for umbrella liability coverage, your other business and personal policies are automatically upgraded accordingly.
9. State law may require that you have business insurance for certain aspects of your business. Make sure you have all the insurance coverage you need to stay compliant.
10. Higher deductibles can save you money.
The more risk you are willing to take on your own shoulders, the more money you save on the cost of your premiums. Be careful though, you don't want to cut corners then get caught without enough business insurance when you need it most.