Posted by Fletcher Accounting and Tax Service Inc.

Small Business Insurance: What’s best for your business?

Small Business Insurance: What’s best for your business?

General Liability Insurance

It is necessary for all types of business including home-based to acquire liability insurance. Liability insurance offers protection and compensation in case a third party incurs a Bodily Injury or Property Damages that was caused or allegedly caused by the company’s products and services or even its employees.

Property Insurance

This insurance protects the building, and business assets such as office equipment, computers, inventory or tools from unfortunate events like fire, smoke damage or even from vandalism, and theft. We can also include the policy that protects the earnings of our business if in case its operation is temporary in cease which is the business interruption/loss of earnings insurance.

Business owner’s policy (BOP)

A policy that bundles the overall necessary protection a business owner requires is called the BOP or Business owner’s policy. Usually, it comprises insurance such as business interruption insurance, property insurance, vehicle coverage, liability insurance, and crime insurance. The inclusion of the policies in BOP depends on the companies particular requirements. In general, business owners who choose BOP saves more money as a result of the lesser cost of the set of services acquired than the overall cost of each insurance. 

Commercial Auto Insurance

Basically, commercial auto insurance covers vehicles of the company that carries employees, products or equipment. The policy safeguards work cars, SUVs, vans, and trucks from future damages and accidents. Moreover, a Non-owned auto liability policy is applicable to those companies who do not own a vehicle, but its employee drives his own car for the company’s work-related activities. Thus, this will protect the company if by any chance the employee does not have or has insufficient insurance. This kind of policy is frequently included in the BOP insurance.

Worker’s Compensation

On the other hand, worker’s compensation offers insurance to employees who incur work-related injuries. It is a kind of policy that gives salary compensation and medical assistance to those who are injured during work. In return for these benefits, employees must waive their rights to take legal action against their employer for the unfortunate event. Owning a worker’s compensation insurance is very essential for a business owner’s as it secures them and their company from any legal hassles. Bear in mind that in every State there are different laws. However, if you have W2 employees it is mandatory to have workers' compensation. Failure to comply will result in a really uptight penalties.

Professional Liability Insurance

Errors and Omissions Insurance is an alternative name for this policy. In the case of erroneous or unable to render professional services this insurance will give protection and compensation. Be fully aware that the said protection is not included in general liability insurance. Professionals such as lawyers, accountants, consultants, notaries, real estate agents, insurance agents, hair salons and technology providers are allowed to have this kind of insurance.

Directors and Officers Insurance

This kind of policy covers the company’s directors and officers towards their actions that could impact the company’s operations and efficiency. In the event that the actions were taken by the company’s director or officer lead him/her into a legal situation, this policy will provide protection to possible charges and compensation from proceedings.

Data Breach

Generally, all businesses are responsible for protecting all the recorded information especially those non-public or sensitive data from their clients and employees that are being kept in computers, servers and paper files. Data breach policy gives security and prevents loss in case of a breach happens either electronically or by paper.

Homeowner’s Insurance

Homeowner’s insurance is the most essential policy we must have. This will serve as a protection of our home and the things inside it from damages. Furthermore, it will protect us from accidents occurred in our home or may possibly happen because of our own actions.

Renter’s Insurance

It is a subcategory of a homeowner’s insurance but renter’s insurance is only applicable to those individuals that currently renting a house. The policy covers protection towards damage to the physical property, contents of the property, and personal injury occur inside the house.                                                  

Life Insurance

Life insurance covers an individual from death. If a person is insured by life insurance, upon his death, the insurer gives a specific amount of money to the beneficiary. In return for the benefits that the beneficiary will get, a premium must be paid first. If you want to have peace of mind and assure that your loved ones will not be burdened financially upon your death it is very necessary to acquire the said insurance.

Fletcher Accounting and Tax Service Inc.
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