If you own a business, you know that an enormous amount of time and money goes into building it. Unfortunately, a natural disaster, lawsuit, injury to an employee, or even the death of a partner can be financially devastating for a company. The purpose of business insurance is to protect your personal and company assets from these risks. By insuring your business, you transfer these risks so that you remain free to focus your attention on day-to-day company operations.
Your state government determines which types of businesses must be insured and minimum standards for coverage. As a general rule, any business with employees must carry unemployment insurance, workers’ compensation insurance, and state disability insurance. Even if you aren’t an employer, it’s still common practice to carry enough insurance to cover the value of your assets.
When you insure your business, the insurance company agrees to share in the business risks in exchange for regular premium payments. If you suffer a covered loss, the insurance company will reimburse you up to the policy limit subject to you paying any deductible.
There are a variety of coverage options available depending on your particular business needs and practices, including:
Properly insuring your business can mean the difference between keeping the doors open and filing bankruptcy. Depending on your coverage, a business policy can restore damaged property, protect you against a lawsuit, and even replace lost income.
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