The Different Types of Insurance Policies for a Small Business

A small business would normally be referred to as privately own or being managed by the owner himself or a highly specialized individual. A small business usually has few employees, sometimes less than   As such, protection may not be in their priorities. There are 2 most commonly used insurance for small business. These are property and liability insurance.

What is property insurance? As the word connotes, property refers to the building and its contents. It may also refer to the computers and printers and other accessories. Properties can be in the form of office furniture and inventories and supplies. Risk insurance coverage can be further classified into basic, broad or special coverage.

In basic coverage, the cause of the damage is due to any of the 11 causes. The 11 causes are as follows: a) fire, b) lightning, and c) hail or windstorm but not including frost or cold weather, ice, snow or sleet, d) explosion due to explosion of gasses and fuel, e) smoke, f) aircraft or vehicle, g) riot or civil commotion, h) vandalism, i) sprinkler leakage, j) sinkhole collapse.

In broad coverage, this will cover not only the 11 causes but there are 3 additional causes of loss as well. These are falling objects, accidental water damage and the weight of ice or snow.

In special coverage the insurance company includes a lot of exclusions in the policy. This form of coverage is more comprehensive and more common than basic and broad coverage.

Aside from property insurance, there is a liability insurance that small business owners should invest into. Liability insurance is when your business is being ordered to pay an individual, may he be your associate or customer, as long as that person is injured on your property. Another form of liability insurance is product liability. This type of coverage protects the business owner from lawsuits arising from complaints from customers who have tried the product that you are providing for in your business. There is auto liability insurance, insuring vehicles used by the company. This will protect the company from damages caused in auto accidents arising from business related activities.

In finding and buying insurance for your small business, there are a lot of packages available. Insurance can also be custom fit based on your needs. What is important is your investment is protected.