Small Business Insurance
Small business insurance is frequently a necessity, not
an option. As a business owner, you will have many
choices, some far better than others. Becoming an
educated business consumer about insurance will pay
big dividends.  
Buying business insurance is among 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.

Ranging from indispensable worker's compensation insurance to the relatively obscure executive
kidnapping coverage, insurance is available for nearly any business risk. Considering the multitude of
available options, business owners must carefully weigh whether the cost of certain premiums will justify
the coverage for a given risk.

General Liability
Many business owners buy general liability or umbrella liability insurance to cover legal hassles due to
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 required
during an appeal procedure.

Product Liability
Every product is capable of personal injury or property damage. Companies that manufacture,
wholesale, distribute, and retail a product may be liable for its safety. Additionally, every service
rendered may be capable of personal injury or property damage. Businesses are considered liable for
negligence, breach of an express or implied warranty, defective products, and defective warnings or
instructions.

Home-Based Business Insurance
Contrary to popular belief, homeowners insurance policies do not generally
cover home-based business losses. Commonly needed insurance areas for
home-based businesses include business property, professional liability,
personal and advertising injury, loss of business data, crime and theft, and
disability.

Internet Business Insurance
Web-based businesses may wish to look into specialized insurance that
covers liability for damage done by hackers and viruses. In addition,
e-insurance often covers specialized online activities, including lawsuits
resulting from meta tag abuse, banner advertising, or electronic copyright
infringement.

Worker's Compensation
Required in every state except Texas, worker’s compensation insurance
pays for employees' medical expenses and missed wages if injured while
working. The amount of insurance employers must 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.

Criminal Insurance
No matter how tight security is in your workplace, theft and malicious
damage are always possibilities. While the dangers associated with hacking,
vandalism, and general theft are obvious, employee embezzlement is more
common than most business owners think. Criminal insurance and employee
bonds can provide protection against losses in most criminal areas.

Business Interruption Insurance
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
significant amount of time.

Key Person Insurance
In addition to a business continuation plan that outlines how the company will maintain operations if a
key person dies, falls ill, or leaves, some companies may wish to buy key person insurance. This type of
coverage is usually
life insurance that names the corporation as a beneficiary if an essential person dies
or is disabled.

Malpractice Insurance
Some 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.

Courtesy of the U.S. Small Business Administration.
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Business Insurance