Business Insurance

Business Insurance
by Takara Alexis

Buying business insurance is one the best ways to prepare for the unexpected. Without proper protection, misfortunes such as the death of a partner or key employee, embezzlement, a lawsuit, or a natural disaster could spell the end of a thriving operation.

Various business owners buy general liability or umbrella liability insurance to disguise legal problems created by claims of negligence. These help protect against payments as the result of bodily injury or property damage, medical expenses, the cost of defending lawsuits, and settlement bonds or judgments needed during an appeal procedure.

Despite popular belief, homeowners insurance policies don't generally take care of home-based business losses. Commonly required insurance areas for home-based businesses include business property, professional liability, personal and advertising injury, loss of business data, felonies and theft, and disability.

Web-based businesses might want to look into specialized insurance that covers liability for destruction done by hackers and viruses. Also, e-insurance usually covers specialized online activities, including lawsuits resulting from meta tag abuse, banner advertising, or electronic copyright infringement.

Required in every state with the exception of Texas, worker's compensation insurance pays for employees' medical costs and missed wages if injured while working. The amount of insurance employers needs to carry, rate of payment, and what types of employees must be carried varies depending on the state. In most cases, business owners, independent contractors, domestic employees in private homes, farm workers, and unpaid volunteers are exempt.

Some businesses may wish to acquire insurance that covers losses during natural disasters, fires, and other catastrophes that may cause the operation to shut down for a long time.

Many licensed professionals need protection against payments as the result of bodily injury or property damage, medical expenses, the cost of defending lawsuits, investigations and settlements, and bonds or judgments required during an appeal procedure.