Insuring a Business

Articles

• Business Interruption Insurance

  Business interruption insurance would cover your indirect losses if a natural disaster (e.g., fire, lightning, ice damage, or hurricane) struck and rendered your company inoperable. After a waiting period, this insurance can help restore your business to where it was before the catastrophe by covering extraordinary expenses, salaries of key personnel, tax payments, and loss of income while the business is inoperable. Coverage extends for the length of time needed to resume normal business. It's a good idea to work with an insurer that specializes in commercial business insurance.

• Business Liability Insurance Basics

  Your business needs protection in many areas--bodily injury and property damage, faulty products, improper or negligent workmanship, and claims from employees, to name only a few. Commercial general liability insurance (a third-party insurance) offers protection against bodily injury and property damage claims, and pays damages to those who file claims; no payments are made to the business or owner. A commercial umbrella policy will supplement your coverage and liability limits. Employer's liability insurance protects against employee injury or employee suits.

• Business Overhead Expense Insurance

  Business overhead expense insurance protects your business if you, the insured, become disabled. Monthly payments from this insurance would allow your business to continue operating for the period of time you select. This insurance supplements but doesn't replace your own personal disability insurance. It won't cover your salary, but it will reimburse you for rent or mortgage payments, employee benefits, taxes, and so on. Generally, policies will pay monthly benefits equal to the amount of your business's actual expenses. Your business owns the policy, pays the premiums, and is the beneficiary.

• Commercial General Liability (CGL)

  A commercial general liability policy insures your business against general liability exposures. The type of business insured (sole proprietorship or corporation) determines who can be covered. However, the insured parties are not covered for personal liability, only for liability claims and damages related to activities or services performed for the business. Since not every liability risk is covered, you may want to purchase coverage for one or more of the items excluded by your policy.

• Income Tax Tips: Business Insurance
• Professional Liability Coverage
• Understanding Your Business Owners Policy
• Why Insure Your Business?

Q&As

• I own a business. Are there any creative ways I can use life insurance in my business?
• What kind of insurance coverage do I need for my small business?