It
is wise for any business to possess a general business insurance
policy, which includes liability and other standard coverage. Your
place of business, if you own it, should be insured; and if you rent,
you still should possess your own coverage. Don't rely on the
landlord's insurance.
It
also depends on the type of business and the amount of liability
exposure that you have from doing business activity. Unfortunately, bad
things happen to the most conscientious business owners, so having
insurance is not a bad idea. In addition, insurance may be required for
employees (such as worker's compensation insurance, state disability
insurance, or unemployment insurance).
Some common forms of business insurance include:
-
Commercial multi-peril policies (covering a variety of exposures)
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Lability insurance covering premises, activities, and products
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Business interruption insurance
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Surety and performance bonds
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Employee fidelity bonds
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Malpractice and errors and omissions coverage
In
deciding whether to purchase insurance, an analysis of your risk
exposure should be performed. Like the following examples, if you can
reasonably imagine it happening to you, it might.
-
You arrive at work one morning to find that all of your computer equipment has been stolen.
-
A customer slips on a just-washed floor in your market and breaks her ankle.
-
A
number of children have severe allergic reactions after eating cookies
you manufacture, because whey in the ingredients wasn't listed.
-
One of your employees leaves on a coffee maker and it burns down the building where you lease office space.
-
A UPS delivery person slips on your icy driveway while delivering office supplies to you for your home office.
-
You
fire an employee who was constantly late for work and alienated
customers. He turns around and sues you for wrongful termination.
-
If you are unable to determine your risk of loss from engaging in business, contact a commercial lines insurance broker.
