Business Insurance 101

Business Insurance 101

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Business Owners Insurance Glendale | Glendale Business Owners

Commercial or Business Insurance encompasses a vast array of different coverages and options. Unlike a personal home policy which bundles property and liability coverages together, most commercial policies start as “al a carte” and you build the policy to your business’ specific needs.

In today’s tough economic times, business owners are reviewing different methods to cut their operating costs. The “evil” insurance premium is one of the first items to undergo hard scrutiny. While actively reviewing your policy’s coverages, be careful how you change or delete protection. Sometimes the removal of or decrease in coverage or limits does not serve your business in the long run. If you suffer a major loss and do not have adequate coverage and /or limits, the probability of recovering financially and resuming your operations is severely decreased.

There are 3 types of insurance that you need to be aware of as a business owner: Property, Liability and Persons.

Property Insurance-
Basic property insurance can protect your building (owned or leased), inventory & supplies, machinery, office equipment including furniture, computers, printers, and fax machines, valuable accounting and other paper records, signs, and vehicles. This is only a partial list of items that can be insured. Separate policies can be written for earthquake and flood exposures.

Business Interruption, Mechanical Breakdown and Ordinance and Law coverage are also very important property coverages.

Liability Insurance-

Liability insurance provides coverage in the case of allegedly caused bodily injury or property damage to a third party. Sometimes a lawsuit may be involved and if the claim is covered by your policy, defense costs are also provided by the insurance carrier.

Other types of liability insurance include but are not limited to: Business Auto Liability (vehicles that are being used for business purposes), Professional Liability (Errors and Omissions or Malpractice Insurance), Employment Practices Liability (wrongful termination, sexual harassment and race-, gender- or age- based lawsuits), and Cyber Liability (expenses incurred when your are hacked or victim of computer virus)

Persons-

Company offered Health and Dental plans may continue to be optional depending on current law and your size of business. However Workers’ Compensation is a state-mandated coverage for injuries and illnesses that are job-related. Workers’ Compensation may also pay medical, disability income, rehabilitation and death benefits.

Commercial Insurance can be complicated and confusing to a business owner. Proper business insurance is a vital and necessary part of protecting your assets and your company’s future earning potential. By talking to a knowledgeable agent, you will maximize the protection and value of your commercial insurance policy.