3 Questions and Answers About Business Insurance

 

Fires and car accidents happen. People slip, fall, and get sick. Any of these things can occur in your business. This is why all businesses, whether they are one-person operations or multimillion dollar corporations, need business insurance.

Frequently Asked Questions About Business Insurance

What Is Business Insurance?

“Business insurance” includes all of the different types of coverage available to protect business owners from losses. Through business insurance, you can cover your property and business vehicles, insure against legal claims such as liability or workers’ compensation, and also provide health insurance for your employees.

Why Do I Need Business Insurance?

Even if you don’t think your business has enough assets to be sued, or if you believe because your business in incorporated, you’re shielded from personal liability through the so-called “corporate shield,” you still need business insurance. Why?

Because anyone can be sued, judgments can be collected through wage garnishments and bank account seizures, and even corporate shields can be pierced under certain circumstances. In fact, the smaller your business, the more likely that you can be held personally liable for debts through your personal assets.

Very simply, your business needs business insurance because of the many risks and potential threats to its successful and continued operation.

What Types of Business Insurance Are Available?

The main types of business insurance you should consider include:

Property and Casualty Insurance. 

Property insurance covers the physical location of the business (even if it is rented or leased) and its contents from things like fire, theft, flood, and tornadoes. Casualty insurance, on the other hand, covers the operation of the business, but the two are usually grouped together in policies.

Commercial Auto Insurance. 

Commercial auto insurance covers your business for loss or damage to vehicles used by your business and for damage to others caused by your business vehicles.

Liability Insurance. 

Liability insurance covers you if someone sues you for negligence, which can occur, for instance, if someone falls on your property.

Health Insurance.

Health insurance provides health coverage for you and your employees.

Workers’ Compensation Insurance. 

For most businesses, if you have employees, you must obtain workers’ compensation insurance which covers employees if they are injured on the job.

Do You Need To Speak With An Experienced Business Law Attorney?

If you need to speak with an experienced business law attorney please feel free to contact us online or call our office directly at 888.864.9981. We will be happy to discuss your legal options!

Scott Swier
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Founding Member, Attorney At Law