| Types of business insurance |
| Property insurance: | |
For theft or fire. Earthquake and flood protection must be purchased separately. |
| Liability insurance: | |
If you are sued by someone |
| Business interruption: | |
Provides substitute income if your business is damaged from theft or fire. |
| Key person insurance and group life insurance:
| | Provides a lump-sum payment if a key person dies or cannot work anymore. |
| Home based business insurance:
| | Covers items not normally covered with a homeowners policy, such as inventory and
office machines. |
| Commercial auto:
| | Covers you and your employees for work-related accidents. |
| Workers compensation insurance:
| | Required by law for businesses with employees. Pays for expenses and provides income
if employees are injured while performing the job. |
| Health insurance: |
|
Pays for medical expenses (except expenses covered by workers compensation insurance). |
|
| Talk to an agent | |
Every business owner should discuss their insurance needs with an authorized agent. In
particular,
home occupation businesses should review their homeowner's policy to determine whether that
policy covers their home business. |
|
| On-the-job injuries | |
If you have employees, you are required by law to carry workers compensation insurance.
However, this insurance is generally not available to business owners. In general, sole proprietors and partners must carry their own health and disability insurance. |
|
| Ask vendors for certificate of insurance |
|
Before you conduct business with others - especially if they will handle your products
or will perform a potentially hazardous job (even driving a car), ask them to provide you a
certificate of insurance from their insurance carrier. |
