BUSINESS
INSURANCE
- Types of
Business Insurance
1. General
liability (GL) insurance : General liability (GL) insurance covers claims of injury
or property damage caused by business operations.
2. Professional
liability insurance: Professional liability insurance protects you against
claims due to negligence, misrepresentation, bad advice, or financial losses
due to your services. It is also called errors and omissions (E&O) insurance.
3. Product
liability insurance: Product liability insurance covers legal expenses if someone
says a product you manufactured, sold, or distributed caused an injury or
damage. This coverage may be included in a general liability insurance policy
and is different from product recall insurance.
4. Commercial
property insurance: Commercial property insurance protects physical assets,
including equipment, tools, inventory, and furniture. It may also include business interruption insurance, which covers the replacement
of lost income if operations need to cease due to damage to the building or
equipment.
5. Commercial
auto insurance : Commercial auto insurance covers a business’s exposure to
bodily injury, property damage, and medical coverage when vehicles are used for
operations. Depending on your specific needs and policy, this may include autos
owned by your business, autos leased by your business, or autos used by your
business even if not owned or leased.
6. Home-based
business insurance: Home-based or in-home business insurance covers the equipment
and liability of a business that operates in the business owner’s personal
home. Coverage may be obtained as an endorsement on the homeowners insurance
policy, depending on the insurance company, but it may be limited.
7.
Workers’ compensation insurance :
Workers’ compensation insurance covers employees’
injuries and lost income, up to a certain amount, when they are injured on the
job. It may also pay a death benefit to the employee’s family if they are
killed.Many states combine workers’ comp with employer’s liability insurance to provide more
comprehensive coverage.
8. Commercial umbrella insurance: Commercial umbrella insurance supplements a business’s liability coverage if a lawsuit exceeds the coverage limits provided by the underlying policies.
- Four steps
to buy business insurance are as follows:-
9. Assess your risks. Think
about what kind of accidents, natural disasters, or lawsuits could damage your
business. For example, if your business is located in a commercial area that is
at risk from seasonal events such as fire or hail storms, commercial property
insurance will help protect against loss.
10. Find a reputable licensed agent. Commercial
insurance agents can help you find policies that match your business needs.
They receive commissions from insurance companies when they sell policies, so
it's important to find a licensed agent that’s interested in your needs as much
as his or her own.
11. Shop around. Prices
and benefits can vary significantly. You should compare rates, terms, and
benefits for insurance offers from several different agents.
12. Re-assess every year. As your business grows, so do your liabilities. If you have purchased or replaced equipment or expanded operations, you should contact your insurance agent to discuss changes in your business and how they affect your coverage.
II. Compare business structures
|
Business structure |
Ownership |
Liability |
Taxes |
|
Sole proprietorship |
One person |
Unlimited personal liability |
Self-employment tax Personal tax |
|
Partnerships |
Two or more people |
Unlimited personal liability unless structured as
a limited partnership |
Self-employment tax (except for limited partners) Personal tax |
|
Limited liability company (LLC) |
One or more people |
Owners are not personally liable |
Self-employment tax Personal tax or corporate tax |
|
Corporation - C corp |
One or more people |
Owners are not personally liable |
Corporate tax |
|
Corporation - S corp |
One or more people, but no more than 100, and all
must be U.S. citizens |
Owners are not personally liable |
Personal tax |
|
Corporation - benefit corporation |
One or more people |
Owners are not personally liable |
Corporate tax |
|
Corporation – Non profit |
One or more people |
Owners are not personally liable |
Tax-exempt, but corporate profits can't be
distributed |
III.
Best
Small Business Insurance Companies In USA Location
1. Nationwide
2. Hiscox
3. Chubb
4. Allstate
5. The Hartford
6. Travelers
7. Liberty Mutual
8. Progressive
9. State Farm
