Monday, October 18, 2010

Insurance your business can be cheaper

Are you looking forward to start your own business in the near future? If yes, keep in mind that you will have different costs to cover each month and insurance is n important element of theses costs. Insuring your business is very important especially if you are a small business just starting out. Fact is that even big companies with large risk funds use insurance as a risk management tool. And paying for insurance can cost you quite a lot sometimes. But it doesn't mean that insuring your business should always be expensive. There are ways you can lower your insurance costs and still keep the coverage your enterprise needs. However, before you actually start reviewing your policy you should learn the main elements of insurance for business. And by adjusting the coverage for these elements you will be able to cut insurance costs effectively. Basic forms of insurance for business: 1. Business Owner's Policy (BOP) -The most advantageous form of insurance for a small enterprise that has less than 100 employees. This insurance delivers both property and liability insurance and only one premium has to be paid. 2. General liability - Most liability exposures are covered under this form of insurance. Situations that are covered range from accidents to legal action. 3. Property insurance - As the name suggests, this form of insurance covers the property of the business against different risks. Most policies cover fire, flood, theft and natural calamities, however you should analyze the policy for an exact list of covered situations. 4. Workers' compensation - This type of business insurance assures the responsibility of the employer towards his workers by providing medical care, compensation and lost income in case of accidents or other work-related situations. 5. Professional liability/Error and omissions - Covers your enterprise if it gets exposed to liability from clients or partners due to operational errors or malpractice. 6. Directors and officers - Protects senior staff from work related risks. 7. Business automobile - Specific auto insurance for vehicles that are used in commercial purposes by your company. 8. Umbrella - Insuring different assets with a single coverage in case the costs reach a certain level rather than buying separate policies for numerous assets such as property, vehicles. Etc. 9. Travel - Pays for the accidents that take place when an employer is in a business travel. 10. Key person life - This form of business insurance protects the enterprise from the losses that are caused by disability or death of a key employee. 11. Business interruption - Covers the losses that the business has to face due to temporary suspension of operations due to unpredictable events such as fire. It will cover the net profits that are lost during this period. Once you learn the coverage amounts for these forms of business insurance and analyze your insurance needs it will be much easier for you to adjust the policy to your exact requirements. Remember that the key to cheap business insurance is having the right coverage for the risk your business needs protection against, not what your insurance provider thinks is best for you.

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