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What To Include In Your Business Insurance Policy
Author David Schneider | May 23,2007
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A business insurance policy is like a shopping catalog of all kinds of things that you can choose from-a buffet of policies. Some of the things are absolutely essential - others are extras but may be very nice to have. In the real world, though, all features of an insurance policy cost and it soon adds up quickly. Here are some things that are "must haves" for your business insurance policy and a couple of nice to have things, too.
First of all, if you are a small business, you will want to look at a package deal offered by many insurance companies - simply called a Business Owners Plan (BOP), and it will provide you with the basic features that you need. Other special types of insurance can generally be added as riders, or you can purchase them separately.
Types Of Coverage
As with a regular homeowners policy, you will need to decide about how you want to be covered. You can decide between actual cash value, which includes depreciation, or replacement value. Actual cash value will reimburse you for the value minus any depreciation. If the building or item has been around for a few years, then you might only get 50 percent of what you paid for it. Replacement value, however, will enable you to actually have new items of equal value.
Property Value
It is entirely up to you just how much insurance you take out for your business. Of course, the higher the value, the more it will cost. The main idea behind insurance, though, is to get enough to rebuild what you lost. The value of a building is always more than what it would actually cost to rebuild it. If you have a sizable bank account, you may even only need to insure it for a percentage. This will enable you to have a much greater savings.
Liability
Lawsuits abound in this day and age - especially in the larger cities. You will want to note how much businesses are being sued for and for what reason and have at least that much coverage. Business insurance agents will be able to get you this information.
Business Interruption Insurance
This part of your business insurance covers you whenever your business is interrupted because of a loss. Like event coverage, losses may be caused from other reasons, such as power loss, inability to get new supplies, your entrances become blocked or civil authorities may hinder business, etc. There is typically a wait period between the event and when your coverage begins. You need to know that time period and get it set to where you need it.
Extra Expense Insurance
When your business takes a loss you may need to set up somewhere else. This coverage will provide you with the expenses you need to secure a building and set up new operations. This insurance is not a part of Business Interruption Insurance and needs to be purchased separately.
Worker's Compensation Insurance
Those employees that you have hired to work for you and do a specific job can turn against you and sue if you do not have this. If one of them gets injured on the job, then it could be a real problem on your hands. State law does require you to have it if you have any employees.
Key Person Insurance
A small business is usually built up around the talents of one or two people. This means that you need coverage if this person that you are relying on so much should pass away - so that your business won't die with them. This insurance, in the form of life insurance, provides money to be able to buy that person's portion of the business from the family so that the business can go on.
Getting a good insurance policy for your business means that you need to start by getting some quotes, and talking with an insurer about your business. QuoteMatch.com is one place where you can get started and discover what is available and what your needs are. By filling out the no obligation form at QuoteMatch.com, you can get quotes from various online insurance brokers who will give you thier best quotes for business insurance. Then, the choice is yours to get the best one for your business needs. |
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