Understanding The Intricacies Of Insurance

Make Sure You Get The Right Kind Of Insurance For Your Business

If you are getting ready to open your first business, you probably have a lot of things on your mind. You may be flustered and confused about all the different laws, ordinances, licenses, and inspections you need before you can actually get down to business. Just when you think you have things under control, you remember about insurance. When it comes to business insurance, things get a bit more complicated than what you are used to. Here are a few different types you need to consider to protect everything you have invested. 

Property and Liability

General property and liability insurance for a business are very similar to what you would have as a homeowner. However, you will want and need more coverage than what you have for your home's policy. For property coverage, you need to remember that the building is probably larger, and you want to be sure that all your inventory and equipment is covered if there should be an accident, fire, or another catastrophe.

As for liability, consider the number of people you will have (or hope to have) coming to your establishment. In addition, these people will not be your friends who may not make a claim against you if they get hurt. Customers and patrons tend to make claims for even small issues so you need to be prepared. 

Professional Liability

This type of liability is different than that of liability for someone getting hurt on your premises. Professional liability covers you when you are manufacturing something or performing a service. If the thing you make, even if it is food in a restaurant, causes someone to become ill or injured, you need professional liability to cover you for the damages. When you have a service-oriented business, this coverage will protect you if something you did causes harm or damages. 

Worker's Compensation and Unemployment Insurance

If you have any employees you will need to have insurance to protect you if one of them gets hurt while working or you have to lay them off or let them go. While the worker's comp coverage can be added to the rest of your insurance policy, most states will have you pay the unemployment insurance premiums directly to them. Make sure you discuss this with your agent and create an account with the state if necessary.

Having the right types and adequate business insurance is crucial to your success and profits. You do not want to have to close up because there was an accident and your insurance won't cover the expenses. For more information, contact a business insurance company such as Cache Valley Insurance Inc.


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