Business Insurance – what is covered
Business insurance covers losses or damages to your property perils like fire, theft and accident.
It also provides protection from liability claims and other legal liabilities arising due to the death of an employee or any damage caused by his/her actions.
If you employ people in your business, it is compulsory that you have a workers compensation scheme for them.
The employer must provide compensation to the injured party if he causes any injury while on duty or performing a task assigned to him.
This can include medical expenses as well as pay lost during recovery time.
As an employer, you may also need to buy a policy that protects your business against claims of discrimination in the workplace. This includes sex and race related discrimination often know as Management Liability Insurance.
The insurance will cover any legal costs incurred due to these types of lawsuits as well as pay damages awarded.
Insurance examples for small business
Business Insurance Example 1:
Insurance covers damage to another object or person’s property caused by you. Insurance covers loss of money in your safe as a result of fire, burglary or any other vital reasons.
Insurance provides compensation for any legal costs that may arise due to disputes with another person over the ownership or delivery of items you sell/provide, etc.
Business Insurance Example 2
Insurance would cover the cost of goods lost due to fire, flood, theft and vandalism.
It also covers legal liability claims made by third parties against your business. What they need to prove is that your actions have caused them some financial loss because they suffered a physical injury or death. An example is when you accidentally injure a customer when he visits your shop; it’s highly likely that his family will sue you for damages like medical expenses and loss of income if they are breadwinners.
Business Insurance Example 3:
This policy will cover any legal costs incurred if an accident occurs due to negligence by you as an employer during the course of employment like faulty equipment used by an employee while performing a task assigned to him. It also covers damages awarded by a court and actions taken against you as either party involved in dispute are responsible for their legal costs as well.
Business Insurance Example 4:
In the case of a disaster like fire or flood, this policy covers the cost incurred in repairing/replacing damaged property like stock and equipment. It also provides compensation to your employees for any financial loss incurred due to damage done by a disaster. You need to carefully look at what each policy offers because some will cover financial loss only, while others will compensate for any financial and physical loss.
Business Insurance Example 5:
Business insurance is also available for individual entrepreneurs like drivers running their own transportation service business.
What this covers is damage caused by the driver while performing his duty to other vehicle or property. This includes damages done by faulty equipment used in the task as well as legal costs incurred due to accidents.
Business Insurance Example 6:
Similar policies are available for individuals with their micro business; they can buy a policy that provides coverage against any injury resulting from accidents during work hours even if it’s your fault or that of another worker on the job sharing duties.
Its important to get quality advice from an insurance broker.
There are many types of insurance policies, terms and conditions that make using an insurance broker a smart move.