Jul 7, 2023
Insurance for your Business

Benefit of insurance cannot be over-emphasized and neither can the risk of paying for insurance you don’t need. It is strongly recommended you get the advice of an in-dependent business insurance professional. Be sure to SHOP! Talk to three or four independent agents and compare notes and prices. An insurance professional will construct a massive range of insurance coverage a lot of which you simply may not need. Your position will be unique and you must consider each insurance element carefully to ensure comprehensive coverage.

Whatever your final insurance program looks like, you should review it at least every six months. Your business can alter rapidly, especially in the first whole life insurance few years and insurance needs change with it. Keep your program up to date by calling in your agent and reviewing your coverage. Make changes where necessary.


This is among the most important element of your insurance program. Liability insurance provides protection from potential losses resulting from injury or damage to others or their home. Just recall some of the big cash awards you have read about that have lead from legal cases concerning liability of one kind or another and you will understand benefit of this insurance. Your insurance professional can describe the various types of liability insurance coverage that are available. If you will end up with a comprehensive general policy, the product or service the policy does not include items you don’t need. Pay for only the insurance you need. For example, your business may not need product liability insurance.

Compare the costs of different numbers of coverage. In some cases a $2 million policy costs only slightly regarding green $1 million policy. This economy of scale holds true with most forms of insurance coverage. That is, following a certain value, additional insurance becomes very reasonable.


This type of insurance is specially important for the only real proprietorship or partnership where losing anyone through illness, accident, or death may establish the business inoperative or severely limit its operations. This insurance, although not inexpensive, can provide protection for this situation. Key person insurance might also be required for others involved in your business.

SGC was a small firm run by three partners, a software programmer, marketer, and a general manager. Their product was a complex computer program employed by aerospace firms. Ing, the programmer, was involved in a severe automobile accident, became totally impaired, and SGC lost their programming capability. The problem was that the computer program published by Ing was fundamentally the company’s sole product. Modifications to accommodate the customer became impossible and the time to bring another programmer up to speed was excessive. SGC lost considerable business as a result of this case. These losses has been offset by key person insurance.


You, as a business owner, should be covered by handicap insurance whether or not you decide on key person insurance. This insurance, along with business-interruption insurance, described below, will help ensure your business will continue to operate in the unfortunate situation your location unable to work. Your handicap insurance policy needs to provide satisfactory coverage. Particular attention should be paid to the definition of “disability, inch delay time until payments start, when coverage terminates, and adjustments for inflation.


Fire insurance, like all insurance is complicated and you should know very well what IS and is NOT covered. For example, a typical fire insurance policy covers losing contents but does not cover your losses from the fact that you may be out of business for 2-months while your facility is rebuilt. Fire insurance is mandatory whether you’re working out of a residence or you have a separate facility. You should discuss an extensive policy with your agent. Take the time to understand the details. For example, will the contents be insured for their replacement value or for actual value at the time of loss?

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