Small Business Insurance 101

When you first begin as a small business you don’t have quite so much to lose but as you grow you may want to invest in some additional types of insurance to protect your assets.

Disability insurance will guarantee you some income should you suddenly become unable to work because of injury or illness. The cost to you will depend partly on how long after the incident you begin receiving payments.

D&O insurance which is short for a directors’ and officers’ insurance policy -This policy is to protect a corporation’s officers and directors from personal liability in the event of a claim or lawsuit against them — for example, one that claims wrongdoing in connection with the company’s business.

Vehicle insurance - This insurance covers liability for injuries caused by use of the vehicles owned and operated by your company, and provides additional coverage for the vehicle beyond that of property insurance. If you use vehicles for delivery or for transporting product you should consider vehicle insurance.

Key-person life insurance - This is a life insurance policy for the owner of the business or the key person behind the business. The logic here is the key person is the business so if something happens to that person the business will be compensated for the loss.

Web site insurance - Web site insurance covers claims made against the company’s Web site or as a result of actions taken or items purchased through the company Web site. Experts advise checking your policies to make sure you’re not covered elsewhere. Web site insurance can protect you against lawsuits made in conjunction with activities on your site.

Business interruption insurance - will help your business recover from natural disasters. It will cover you for income lost during the disaster, and will pay for operating expenses that continue to build up, even though your business isn’t functioning. It also covers situations like the loss of a major supplier. For example a major supplier may be affected by a hurricane, an illness or another devastating event. Business interruption insurance will help buy you time until you find a new supplier.

Umbrella Liability Policy – provide additional limits of coverage in increments of $1,000,000 in addition to the underlying limits of General Liability, Business, Auto, and the Employers Liability portion of a Workers’ Compensation policy. For example, if you have an Umbrella Liability Insurance policy with a limit of $3,000,000 and a General Liability policy with a limit of $1,000,000, you have $4,000,000 of General Liability protection.

– Posted in:

Business

– Tags:

commercial car insurance, small business insurance, umbrella liability

– Bookmark:

Digg del.icio.us Reddit StumbleUpon