INSURANCE Before beginning business operations, every owner should carefully evaluate the company’s insurance needs. Today, insurers can design packages that combine several types of coverage to address both general and specialized risks for almost any kind of business. Because the risks and needs of each business differ, no single “standard” insurance program will fit everyone. Coverage should be tailored to your specific operations, assets, contracts, employees, and risk tolerance. Some coverages are required by law (such as workers’ compensation for most employers and commercial auto insurance for business‑owned vehicles); others are required by landlords, lenders, or customers; and still others are optional but prudent. Work with a licensed and experienced commercial insurance agent or broker to identify appropriate coverage types and limits. TYPES OF INSURANCE Sound business management almost always includes an insurance program customized to the firm’s needs. Common coverages to discuss with an insurance professional include: Property insurance Property insurance protects the owner of property (and often the mortgage holder) against loss from damage or destruction of buildings, equipment, inventory, and other physical assets caused by covered perils such as fire, windstorm, explosion, vandalism, or certain other hazards. Policies vary in scope—some cover only specifically listed perils, while “special form” policies cover a broader range of causes of loss, subject to exclusions. Coverage limits and deductibles should be reviewed regularly. Business interruption insurance (and other time‑element coverages) Business interruption insurance protects against loss of income that results when your operations are suspended due to damage to or destruction of covered property. When triggered, it can help replace lost profits and cover ongoing expenses (such as rent or payroll) during the period of restoration, up to policy limits and subject to the policy’s conditions. Related coverages (such as extra expense or contingent business interruption) may be available. Premiums are often relatively low when this coverage is part of a comprehensive package. Some policies can also provide benefits if you are unable to work due to illness or injury; these are typically separate disability or business overhead expense coverages. Liability insurance (including business automobile) Liability insurance protects a business against claims arising out of legal responsibility for bodily injury or property damage to others. General liability coverage typically responds to slip‑and‑fall injuries, damage to others’ property, advertising or personal injury (such as libel or slander), and
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