A Business Fix

www.abusinessfix.com

Business Insurance for the Small Business
by Gannon Pierpont
http://www.fproinsurance.com

If you're still in the planning stages of starting a new
business, you've probably enumerated all your expenses and
laid out all your needs in a business plan. In the
excitement of actually getting your business up and running,
it's too easy to plan for the best and forget to prepare for
the worst. A little insurance can go a long way to help your
business over crises and rough spots.

Based on information gathered from the SBA web site, your
business should carry, at the very least, insurance against
property damage, liability, personal injury and business
losses due to unexpected catastrophes. In addition, your
state may require certain health and injury coverage options
if you employ others to work for you.

Your most important coverage, and the one that will cost you
the most, is property insurance. A good property and
liability insurance policy will cover your business in case
of damages caused by events like fire and vandalism. It is
designed to allow you to rebuild your business in the event
that a natural catastrophe and certain other events damages
equipment and property vital to you business.

Automobile Insurance If your business owns one or more
vehicles, you'll need insurance coverage for them. In
addition, if you're a sole owner, or small business owner
and you use your car for business purposes, check with your
insurance agent about getting a business rider on your
personal auto insurance. In many cases, your personal auto
insurance won't cover you in an accident that happens while
you're driving your car for business purposes.

If your business uses any sort of specialized equipment,
including in many cases computers, you should insure them
under a special rider to your property insurance. Many
business insurance policies limit the amounts that they'll
pay for damages to technical and specialized equipment.
Other kinds of equipment that fit under the 'special rider'
category are cameras (for a photographer) or special
catering equipment.

Business Income Insurance While your property insurance will
cover the cost of damages to your property and equipment in
the event of a fire or other unexpected misfortune, it won't
cover the loss of income due to your being closed during
repairs. Speak to your insurance agent about business income
insurance that will reimburse you for estimated loss of
income due to forced closing in case of unexpected events.

The types of insurance listed above can often be bought from
the same agent under an umbrella business policy. In most
cases, purchasing a Business Owners' Policy that includes
all the coverage that businesses need will be far less
expensive than purchasing each separately.

In addition to insurance that protects your business in case
of catastrophe, if you employ others to work for your
business most states require that you carry workers'
compensation insurance to cover their medical expenses if
they are injured in the course of carrying out their work
duties or on work premises. While this protects your
workers, it also protects your business and you from being
held personally liable for medical expenses in that case.

You may also be responsible for providing them the option of
enrolling in a group health policy. The laws vary from state
to state in terms of exactly what you must provide and how
much your company is required to pay into each policy so
check the laws of your state to find how much you're
required to provide. Many states offer special programs to
small businesses to help them afford health insurance
coverage for their workers.

The needs of some businesses are complex enough that you
should consult an insurance agent who has experience in
insuring your type of business before. If you own a
restaurant or a retail store, an agent experienced in
writing insurance policies for those businesses can advise
you as to the best and most necessary coverage that you
should carry.

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