Skip to main content

What type of insurance does a business need?

How to Insure your Business

If you own a business, you know it's a full time occupation. It takes a lot of time and effort to get a business running smoothly and keep it that way. It also takes a lot of skill and hard work to make the business lucrative. Part of the process is to ensure you're financially protected from possible setbacks, and that means carrying a sufficient amount of insurance. Following are a few tips on how to insure your business.

Determine Your Needs

Determining how much insurance is necessary for your business to be adequately protected and continue to make money is among the first things you need to do. Take the time to look over all your assets. Find out how much your buildings and property are appraised for. If you produce a product, and it takes machinery to do so, determine how much it would cost to replace the equipment. If you have a fleet of vehicles find out how much they're worth. After you've collected all the pertinent data you should begin looking for an agency to handle your insurance needs.

Research Insurance Providers

In your quest to find the right company to provide you with the insurance you require, there are a number of factors to take into account. One of the first things you should do is seek out people who operate a business similar to yours and ask them if they'd be willing to talk about their insurance coverage. If they are, make an appointment and ask them if they're satisfied with their present coverage and the company that provides it. If they are, find out what it is about that particular company they like or dislike. Ask them if they would recommend their company or any other company. Take their suggestions into consideration, and give those companies a call. Discuss your needs with them, but unless you're absolutely sure you won't do better elsewhere, don't sign any papers yet. It would be better to continue researching. Shop around first. Get some online insurance quotes for comparison, and call additional companies to get their best price. Only after you're completely satisfied with a company and their offer should you take out a policy.

Things to Consider

The particulars of an insurance policy should cover any area that may present a financial problem if there is a claim against your business. Liability insurance will probably be your biggest concern. There are four major types of liability insurance you should be concerned with: general liability, product liability, professional liability, and discrimination liability.

General Liability Insurance

General liability is the most common form of liability insurance, and will safeguard your business in case someone gets hurt while in your offices or on the grounds.

Product Liability Insurance

Product liability is also an important consideration. It will give you financial protection against a claimant in the event they are injured by a product you produce, or become sick from it.

Professional Liability Insurance

The third type of liability insurance is only necessary for professional people, such as a doctor, dentist, or lawyer. Generally referred to as malpractice insurance, but more accurately called professional liability insurance, this type of coverage will protect the professional practitioner against lawsuits brought against them that allege they made a mistake that harmed someone.

Discrimination Liability Insurance

A somewhat newer form of liability insurance will protect the business against charges of discrimination, whether it is race related, or a sexual harassment suit, or any other form of discrimination.

Seek Professional Advice

After you've decided how much insurance your business will require, you should seek the advice of a professional, such as an accountant, an attorney, or a financial advisor. Go over your plans with them and have them make suggestions on how it could be improved. Once the bugs are worked out of your proposed insurance plan it's time to make the call to the insurance company you've chosen to provide your coverage.


Popular posts from this blog

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

How does a Prepaid Credit Card work?

Can They Really Be a Solution to Avoiding Credit Card Debt? When it comes to plastic, there are a lot of choices out there. Not only do you have the choice of credit card , debit card, or prepaid credit card, but you also get to decide which financial company you want to use as your card provider. Credit cards and debit cards are both risky. Credit cards can help put you deeper into debt, while debit cards give thieves and collectors access to your entire bank account. A growing number of people are finding that prepaid credit cards are becoming the best option. What Are Prepaid Credit Cards? Prepaid credit cards look and act just like a credit or debit card, except you put the money on the card before you make any purchases. You are only allowed to spend as much money as you have pre-loaded on the card, which means that you are not at risk of going into credit card debt from overspending. These cards also keep your money safe, because thieves will be limited to the amount that is on t

What are the Consequences of Overspending in Life?

How overspending can ruin your financial life? With today’s expenses and their prices, it can be very hard not to overspend. Still, that isn’t an excuse to stray out of your budget. You know why? It is because overspending can only lead to more problems than you think. Overspending can affect your whole life. With all the possible consequences, it may jump from one problem to another. Unpaid bills All the excessive shopping with your credit card can cause steep bills at the end of the month. If you keep on using your credit but don’t have enough money to pay for it in the end, then you’re surely in for a huge financial disaster. This will turn out to be missed payments, and missed payments will ruin your credit report. Missing out on payments will get your credit report marked for 7 years or more. And you can’t get rid of them by finishing them off. Credit report Overspending can cause a chain reaction of events. Once you get your bills due to overspending, it’s possible for you to mi

How to Make Your Title Loans Safe and Sound

Although title loans are tagged as risky, innumerable folks still use them for fulfilling their different financial obligations. Therefore, such loans are not completely bad because their significant use despite the risk factor says a lot of their pros. This makes it vital to discuss how these loans should be used so that the risk factor can be minimized up to a great extent. For those who are not aware of, the risk of title loans crop up in the form of consequences when you fail to pay back the loan. With such a failure, you are surely going to lose your car as well as decrease your credit score further.

Online Small Lenders and Grants For Women

In today’s world women are being more and more prominent. They are hard working mothers. Some are even working to support their entire family because they are single moms.  However the financial aspects of being a working women can be traumatic. Depending on the society you live you women may find it that they are not allowed to work or go to school.  Often times they are kept inside their homes to keep the household running smoothly. However most women find that they can be successful outside of the home and inside the home often doing both at the same time. They are working mothers who are often going to school to better themselves while working in the corporate field. For more information click here .

Money Moves: Imagine Playing Your Financial Life like a Chess Game

To say chess is a popular game would be a gross understatement. Chess, for at least 1500 years, has been considered to be not just a game, but a true test of intellect and character. One can learn a great many things about chess that can be applied to one’s life, not the least of which is one’s personal finance. Chess is a game that requires patience, foresight, and an ability to understand your opponent. Much like your personal finance, these qualities are required for you to come out on top in the end. Here are a few things you can take away from playing chess and use to improve your financial life: