Every businessperson out there needs business insurance so that he can safeguard his investment and not swim in an ocean of debts. Also, business insurance takes care of both your business partners employees, in case accidents occur. You need to be aware of the following basic terms of business insurance so that you can decide which coverage is ideal for your business.
Professional Liability Insurance :
This is the same as error and omissions insurance. This kind of insurance is crucial for business consultants, IT/technology consultants and marketing consultants. You never know when your advice might backfire and in case your client decides to file a lawsuit against you, this type of insurance will come to your rescue.
Property Insurance :
The above insurance makes sure that the assets of your business like equipment, building, contents of the building, and other kinds of hardware are fully protected if/when they get lost or spoilt in incidents like fire, theft and weather events like cyclones, and floods.
Worker’s Compensation Insurance :
If you have employees working for you, then you need to know about worker’s compensation insurance. Here, your workers are protected against any kind of injuries, and the insurance company covers all their medical expenses. This means that you do not need to shed one penny from your pocket, should there be an unfortunate accident involving your workers. Also, you are free from the risk of getting sued by your workers.
Auto Insurance :
This kind of insurance covers the expenses regarding transportation, for both you and your employees. It is advised that you get this insurance because in case you or your employee gets in a car accident, this insurance will come in handy. You can get the best auto insurance deal if you do a thought research and compare car insurance quotes.
Umbrella Insurance :
This one provides additional protection to your business. Umbrella Insurance is extremely beneficial if you other commercial policies do no cover certain areas or if a certain insurance has expired. Lawsuits are often a threat to any kind of business and they have the power to ruin your business completely. With Umbrella Insurance, you can save your business’s potential doom.
Actual Cash Value :
Many people confuse this one and think that actual cash value is the replacement cost. If a certain asset of your business is damaged or no longer in use, then its actual value can be calculated by subtracting the depreciation value from the replacement cost.
Quote
Quote is the rough calculation of the insurance charge for a particular business. Most businesses get an insurance based on only the quote. It is recommended for businesses especially stay ups that they consider other factors too besides the quote. Factors like the insurance provider’s credentials should not be overlooked.
Certificate of Insurance
An official and legal paper, which certifies that the said business has purchase certain kinds of insurances is known as the certificate of insurance. . The written paper contains important details like coverage period, limits of the coverage, insurance company, and other crucial factors.
