The Benefits of Business Insurance

When things are going well with your business, just like your car, your home and your health, you tend to take it for granted. The car will always start, nothing will break in the house and you won’t get sick. Of course, that’s not the way it works in life. Not with cars, homes or our bodies – and definitely not with businesses.

That’s why business insurance can be an absolute life-saver.

In New Orleans after Katrina hit in 2005, the difference between many businesses surviving and those closing was all about business insurance – specifically business interruption insurance. That’s an insurance recommended by many experts because it allows a business owner to handle most of the bills as you work to reopen.

There are several other basic types of insurance that experts say most business owners need. The essentials are worker’s compensation, general liability and property insurance.

Worker’s Compensation insurance Covers injuries that occur on the job and is required in just about every state in the country, depending on the size of your business. Insurance experts in with the web site recommend the coverage even if it isn’t mandatory because it isn’t terribly expensive and protects a significant element of doing business.

General Liability insurance
In today’s litigious society, liability insurance is what businesses need to protect assets in the event of a lawsuit. Once you own a business, you also can be a target for someone who sustains some type of injury – physical or economic . And as the website, businesses can also be sued even if the claim has no merit. Defending a lawsuit that is quickly thrown out of court would still cost money.

Property Insurance
Also a must, according to experts, is property or shop insurance. And it’s easy to understand why. This type of insurance protects all the property in a business. Most policies cover fire, windstorm, hail, riot, explosion and damage from planes, vehicles and vandals. Add-ons are available to also protect against earthquakes and floods.

Nearly as important as the very need for insurance is the choice of a company to provide the insurance, says Don’t rely on special prices on an Internet advert. Talk to someone on the phone or in person. Compare the rates and recommendations of several companies and also try to choose a company recognized for providing insurance that fits your type of business.

Companies that sell insurance have a variety of tools and research that can help show you what type of insurance you need. recommends that business owners ask their agents for that information, or to even go to your industry's trade association to get expert opinions about proper insurance coverage for your type of business.

Finally, all experts agree it's crucial that you don't leave the insurance knowledge totally in the hands of the insurance agent. Make sure you understand your coverage, as well as the proper way to file a claim when the time comes. Understand what your policy covers and what it does not cover will be invaluable when your business sustains a loss.