Insurance is a term that seems confusing until you really understand the different types. Insurance protects you and protects the things you build, manage, and operate. It is an agreement between you and an insurer, stating that in the event of some sort of accident or damage to your company, they will pay you money. There are three types of insurance, all of which provide different levels of protection.
The most basic type of insurance is business insurance. It is a form of protection for your property, finances, and goodwill. General liability insurance protects your company from financial loss caused by others and protects your assets from legal claims. Your general liability coverage also provides compensation to individuals, businesses, or property damaged by your company. It may also be included as part of your employment insurance.
Professional liability is designed to protect you and your employees in the event that they are injured while performing their duties. Professional liability insurance also comes with other forms of coverage such as bodily injury liability, property damage liability, and advertising liability. This type of insurance is very broad, covering a wide array of possible incidents. With professional liability you can be sued for any injury, death, or damage that happens to an individual while doing work for you.
Another type of insurance that protects the business owner is business overhead expense insurance. This provides coverage for expenses paid for products or services rendered to customers, and for anything that increases your company’s cost. Examples include gas, office supplies, and even office space. This is important because it limits the company’s exposure to potential losses. With overhead expense insurance, the business owner is assured that key staff members are shielded from financial hardship should something happen.
The last kind of insurance is loss of income insurance. With loss of income insurance, business owners can protect themselves against sudden and unforeseen losses. This includes not just money or salaries but also inventory, machinery, and supplies. This kind of insurance will also provide coverage for any potential disability that arises from a product recall, employee death, or legal suit. Having this insurance can really help your bottom line.
Natural disasters are another reason why businesses need insurance. Natural disasters include damages from storms, earthquakes, fires, hurricanes, and other damage to land or infrastructure. This type of insurance is often required by law in order to protect against these kinds of events. Having this insurance will allow you to repair and replace damage-causing equipment, and it will cover your losses due to such events.
For those who operate businesses that operate on water, a special type of insurance is needed called klaras. This type of insurance covers both watercraft and employees. For example, if a karuna sinks, the company is responsible for repairs and any personal injuries that may occur on site. Business owners will often add special stipulations to their policies in order to make sure they are adequately protecting themselves and their employees from liability in the event of a karuna accident.
In order to determine which type of insurance is the best choice for you, consider your current lifestyle and what threats you may face in the future. Determine what specific threats you need to protect against, and talk with a qualified insurance agent to find out more about the different kinds of insurance available to you. Insurance can be an important key person insurance, and proper planning can go a long way toward making sure you have adequate protection. Insurance is meant to protect against the unexpected and if you work in an environment where things happen constantly, natural disasters might be one of your key people insurance needs. If you have a company, consider the policies and procedures included to better protect your life and your livelihood.
