Types of Insurance for Small Businesses

Businesses need to cover different types of insurance depending on its property and for welfare of all employees.

  • Property insurance protects against loss or damage to the location of the business and its equipments. Property insurance is for a specific risk, like a fire insurance policy insures only against a fire loss to the site. The insured site may be owned, leased or rented.
  • Liability insurance insures against liability (responsibility) legally demanded upon business because of the negligence or carelessness of the business or its employees. It protects business when the business is sued or petitioned for negligence.
  • Commercial auto coverage insures against property damage to business’s vehicles and damage caused to others by those vehicles.
  • Business interruption insurance protects against loss or damage to the cash flow or stock and profit of a business caused due to interruption when a business cannot operate for some time period. The situation can be critical piece of machinery stuck by a lightning, where production is stopped for certain time period until it gets replaced.
  • Health insurance insures employees and owner of business against any injuries and accidents.
  • Life and disability insurance protects the business against the death or disability of important employees.

Depending on the type of business, the type that is best suitable should be selected.

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Updated: October 30, 2015 — 1:39 am