Small Business Insurance Options
Business interruption insurance is also known as temporary insurance. This type of insurance provides coverage for loss of revenue that a business experiences after a catastrophe. The income lost could be caused by natural disaster-related closure of the business venue or due to the reconstruction process following a natural disaster. Business interruption insurance usually lasts for a pre-determined period of time such as 90 days. The actual amount of loss that is covered depends on the terms and conditions of the contract between the insurance company and the insured business.
There are several types of business insurance protecting different aspects of the business operations. The most common types are property insurance, liability insurance, and workers’ compensation. All of these are designed to protect a business from financial loss due to several types of disasters. In addition, business insurance protects one or more specific areas of a business, such as general liability, intellectual property, advertising, and sales. However, there are several other specialized types that cover additional areas.
Property damage is a special type of business insurance, which is designed to protect businesses against the risk of damage to physical assets. Common physical assets include building structures, inventory, fixtures, and equipment. These assets are usually used for day-to-day operations, such as for payroll, collecting accounts, and processing transactions. Some physical assets may even belong to the company itself like the trademarks and brands of the business. If they are damaged or destroyed, losses incurred can also include business income. This protects both personal and business income.
Liability insurance offers protection from lawsuits. It is often required by law for businesses and most individuals. It is used to protect against property damages, bodily injury, and lawsuits resulting from products or services. This insurance for small business owners helps them reduce their liability claims and helps them recover from the consequences of these claims.
Professional indemnity insurance also offers protection against claims made against a business by clients, suppliers, and employees. For example, if an employee harms his or her employer while at work, this insurance protects businesses and employees. Professional indemnity insurance also covers negligence claims, such as those brought by consumers against manufacturers and service providers. Professional service providers usually employ their own attorneys and pay a portion of their fees in the event of a loss or damage to their business.
fidelity bonds are another type of liability insurance. They offer two forms of protection: a bond and a guarantee. The guarantee works like an investment, helping businesses protect themselves against financial loss due to fraud or dishonesty. Fidelity bonds help companies avoid paying high premiums, since they help reduce losses due to missteps by the insured party.