Types of Business Insurance - You Need to Know

Oct. 20, 2009 - PRLog -- Insurance isn't just a good idea, it's necessary. With all of the variety of potential risk that your business faces, it should be your top priority to protect it. By knowing exactly what kind of insurance you need to purchase, you can limit your risks and save yourself time and money.

General liability insurance is a policy that covers the potential losses associated with any accident or negligence that occurred on business property. By purchasing general liability insurance you can protect yourself from the devastating losses that accidents can bring about.

The next kind of insurance that your business might need is called product liability insurance. Whether your business manufactures, distributes or sells a product, you are responsible for the safety of the product. If a person is injured while using your product because of a defect, your business is financially liable. By purchasing this policy you can successfully protect yourself against any such claims.

The next crucial kind of insurance that your business may want to purchase is called professional liability insurance. If your business provides a service in which errors could potentially cost customers large sums of money, this policy would be a good investment. This is the kind of insurance that covers against any claims of malpractice or negligence on your business's behalf.

Another important insurance policy that you should be aware of is called commercial property insurance. This covers against any potential physical loss due to fire, flood, wind or any other natural disaster. This insurance policy also covers any potential criminal action taken against your business such as vandalism or theft of property. It is available in a two forms: all-inclusive policies and an issue specific policy. By having commercial property insurance you can cover against any potential loss of property or income that may happen to your business.

Finally the last policy that your business may need is referred to as home-based business insurance. It's a relatively common misconception that if you operate a home business your homeowner's insurance covers any losses from your home.

The unfortunate news is that while homeowner's insurance does cover almost any potential damage or loss to your home, it does not cover the losses that your home-based business may suffer. While it may depend on your homeowner's insurance policy, you may need additional insurance to cover your home based business. By investigating which policies best suit your business needs, you save yourself much heartache. It's your job to make your business as much of a success as you possibly can; it's your insurance policy's job to protect what you have made.

Source: http://www.insure4usa.com/BusinessInsurance.html