No matter what type of business you have or its structure, it pays to buy adequate insurance.Without insurance you  risk losing your business if disaster strikes.   The two most common and generally useful types of business insurance policies are property insurance and liability insurance.

Property Insurance

As the name implies, property insurance covers your business for damage or loss to your business property. A good property insurance policy should cover:

• property fixtures, such as lighting systems or carpeting
• equipment and machinery
• office furniture
• computers and accessories (monitors, DVD drives, modems, printers)
• inventory, customer goods and supplies, and
• personal property that's kept at the business site.

   

In addition to establishing what property is covered under a property insurance policy, you'll need to understand which types of losses are covered. Most commercial property insurance policies provide either "named perils," or  "broad form" coverage.

A "named perils"  form policy commonly covers fire, explosions, storms, smoke, riots, vandalism and sprinkler leaks. A "broad" form policy typically typically covers all risks (including theft), unless specifically excluded from the policy. While premiums for "broad" form  policies are more expensive, it may be worth the expense if your business faces multiple or unusual risks. Before purchasing any insurance policy, read it carefully to determine what types of damages are covered.

Also, make sure you understand the coverage limits on various policies, any deductibles or co-payments required, and how the insurance company pays claims. "Replacement Cost" will reimburse you what it costs you to replace the property, not merely its current (depreciated) value. If your telephone equipment is destroyed, for instance, this type of coverage will pay you as much as you'll need to replace it -- at today's cost.

Liability Insurance

Liability coverage protects your business against third party liability claims due to negligence. Coverages can include premise and operation liability for onsite and jobsite accidents and product liability claims for products that injure third parties.  

Package Policies

Many companies will package a policy  to create a  specially tailored product for a specific industry.  These packages can often be cheaper than buying several individual policies separately.

Optional Coverages

There are many optional coverages that can be added to your policy in order to provide the protection you need.  For a partial list of optional coverages click here.