Every business needs
insurance. The types of insurance coverage you need and the amounts of coverage
will vary depending on the type of business, the size of business and the amount
of risk the business is willing to assume. If your business provides personal
services or if you are operating the business without a corporate structure, you
must consider your personal risks as well. You may want to work with an
insurance professional to make sure you have the protection you need.
Here are seven types of
insurance you may want to consider:
Health insurance
Comments and issues
Notes
Providing a health
insurance program can be very attractive for employees and business
owners, but can be expensive. To contain costs, consider sharing the
cost with employees and choosing levels of deductibles and co-pays that
result in lower costs.
Type of plan
Coverage
Deductibles and co-pays
Sharing of costs with
employees
Costs
Source of policy
Property insurance
Comments and issues
Notes
Business equipment
should be insured against damage and theft.
Equipment covered – Be
sure to have a list of equipment with costs, values and identification
information.
Deductibles
Costs
Source of policy
Business interruption
insurance
Item
Notes
If your business was
displaced because of a fire, flood or other disaster, you would need to
re-establish the business in another location. Business interruption
insurance could provide the funds needed. Temporary space, equipment and
supplies could be covered by a policy of this type.
Draw up a list of what
would be required in case of an emergency.
Depending on the extent
of your needs, a policy of this type may not be too expensive.
Costs
Source of policy
Liability insurance
Item
Notes
Claims due to employee
actions or negligence can be significant, especially in an age of
increasing jury awards.
Some coverage may be
provided through other types of policies, but you should discuss your
coverage with an insurance professional.
Deductibles
Costs
Source of policy
Workers’ compensation
insurance
Item
Notes
This insurance provides
coverage for medical and related costs for accidental injuries suffered
by employees in performing their duties.
The amount of coverage
required varies by state.
Discuss your needs with
an insurance professional
Costs
Source of policy
Auto insurance
Item
Notes
Using an auto in your
business, even a personal one, may require a commercial auto insurance
policy. Speak with an insurance professional to determine the
requirements of your business.
Deductibles
Costs
Source of policy
Umbrella insurance
Item
Notes
Umbrella insurance
policies fill gaps that may exist with other policies and provide
additional coverage beyond those of those policies.
The costs are usually
relatively low and policies are offered by many insurance companies.
Some professional organizations also offer these policies.
Equal Housing Lender.