Understand Business Insurance to Generate Leads
Business insurance, in many states, is a mandatory type of insurance, or at least some aspects of it are mandatory to cover. However, business insurance is a good idea for any business, as this can help to deal with unforeseen financial issues that may arise.
Types of Business Insurance
There are several types of business insurance plans that a business can choose. For example:
- General Liability: This is the policy that protects against damages that are put onto the business. For example, it would handle the legal suit should someone fall in a store and sue the business owner.
- Product Liability: This is coverage that protects you from the faulty products that you make. Thus, if a product were to have an item pop off and hit someone in the eye, who then sues you, the policy would help to cover these monetary damages.
- Professional Liability: This is great for businesses that provide a service to the consumer market. With this type of insurance, they are going to be protected from a consumer suing them for providing a service that was not as they claimed or for the customer getting hurt with the service that was provided.
- Commercial Property: With a business, this type of insurance is going to work to protect almost anything that is considered a part of the business, such as the building, lost income and the like.
- Home Based Business: Though the business may be home based, there are policies that are meant to protect your business in this domain as well. Your home policy is not going to cover the business portion that you do inside your home.
What Businesses Need
If you have employees, you must have some type of business insurance in order to protect yourself. What a business needs is usually dictated by the state government. In most cases, the business is required to have:
- Workers Compensation Insurance: This helps to pay for a portion of the workers' salary in the event that they are in injured on the job and need time off.
- Unemployment Insurance: This is to help pay for the unemployment tax that you may be required to pay, according to your state. However, this is not mandatory for all businesses, so be sure to check what you are going to be required to pay.
- Disability Insurance: This insurance is meant to protect you and help you financially should one of your employees become disabled on the job. This is not a requirement for every state, but you should check out what is required in your state.
For businesses, business insurance gives them the peace of mind to practice their service or offer their product, knowing that they are not going to have to pay for any problems out of their own pocket. Though it may not be necessary everywhere, business insurance is still very crucial to protect your business.