Business Insurance

What is Business Insurance?

You will not find a successful business that doesn't carry business insurance. In today's society, it is absolutely mandatory to carry some form of it, regardless of size or location. It doesn't matter if you're performing out of your basement, or if you're a large corporation in a high-rise building. The range of business insurance coverage is huge, with issues from lawsuits to disgruntled employees. Everyday practices can backfire with enough force to cause a disabling blow to the company. Case in point: You send an employee, in his or her own vehicle, to make some deliveries at a post office down the street. In route, they are involved in an accident. Guess where the finger may, and often times points? If an incident occurs, and they are covered by auto insurance, the best coverage you get is equivalent to their range of coverage. If they do not carry any auto insurance, then it can be a world of hurt for the employer.

Workers Compensation Employers Liability Insurance

Workers’ Compensation-Employer’s Liability: Someone who provides any type of service for your business who are ill, injured, or die in the course of providing those services may attempt to claim an employment relationship with you, for the purpose of collecting workers' compensation benefits. It may not end there- often times, the worse off the situation, the more likely someone related to the victim will back them in their claim. If you maintain Workers’ Comp-Employer’s Liability insurance, your policy will usually cover you when anyone claims an employment related injury.

Business Insurance Tips About Property

Some business owners learn the hard way that they didn't buy enough coverage. Remembering to consider certain pieces of your business property when purchasing an insurance policy is vital to keeping your doors open.

Your business may not possess all the following types of property, but you can use this quick reference list to make sure you have thought of all property categories and any insurance coverage that may be warranted for your business:

* Buildings and other structures (owned or leased).

* Furniture, equipment and supplies

* Money and securities

* Accounts receivable records

* Improvements and betterments you made to the premise

* Boilers and machinery

* Data processing equipment and media (including computers)

* Valuable papers, books and documents

* Mobile property such as automobiles, trucks and construction equipment

* Satellite dishes

* Signs, fences and other outdoor property not attached to a building

* Intangible property (good will, trademark, etc.)

* Leased equipment

Tips to Lower Premiums:

Looking for methods to lower your insurance premiums?

An insurance company bases insurance premiums on the risks involved. To do this, they evaluate the situation to determine the risks, or potential for losses. The insurance company determines its rates on the results.

The steps you take today to lower your risks can not only help safeguard your business but may make you eligible for lower insurance rates. According to the Independent Insurance Agents of America, business owners should consider these steps:

* Maintain adequate lighting throughout your business premises.

* Keep electrical wiring, stairways, carpeting, flooring, elevators and escalators in good repair.

* Install a sprinkler system, smoke and fire alarms and adequate security devices.

* Keep only a small amount of cash in the cash register.

* Keep good records of inventory, accounts receivable and equipment purchases.

* Consider keeping a second set of records off-site, such as with your accountant, insurance agent or at home.

* Make sure your employees have good driving records.

* Make sure your employees know how to lift properly and use all necessary safety equipment, such as goggles, gloves and respirators.

* You should consider using the services of a risk manager. An outside consultant can advise you of any safety or environmental regulations you may have overlooked.

* Talk to your employees about safety practices.

You may also want to raise your deductible where appropriate to lower your premiums. How high to raise the deductible should be governed by how much you can afford to pay out of pocket. Be careful not to raise it so high that you cannot cover it should a loss occur.