Small Business Insurance Tips
As a small business owner, you have insurance needs just like any other business. In addition to a personal life insurance policy, you should consider a key employee life insurance policy. If your business employees a particularly valuable employee who performs specialized work, you can buy a policy equal to five years of the key employee’s income. This allows you to continue operations and find a replacement in the unfortunate event of your employee’s death.
Liability insurance is another area many small businesses neglect. A Comprehensive General Liability (CGL) policy provides third party coverage for personal injury, medical expense, medical payments, fire legal liability and liability for your premises. If you own a building and lease space to others, insurance of this kind is usually required by law. Even small business owners who operate from home should consider liability insurance if they have customers frequently visiting the premises.
Many home business owners operate with their office equipment uninsured, because they don’t realize that even if they only work part-time from home, it still constitutes a home business. You should check with your insurance company regarding your current policy, because your home office equipment may not be covered unless your insurance company knows that you are operating a business out of your home. Take a moment to think how much money you have invested into your home business. How much would it cost to rebuild and reequip your office in the case of a disaster? Depending on the tally of your investment, you may want to consider additional insurance coverage catered for those who do business from their home.
The decision regarding your home office insurance, life insurance and liability insurance involves many variables at should be explored with your agent. Work with your insurance company to find the best solutions for your needs and make sure that your business is prepared for the future.
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