If you're a business owner and you've never thought about insurance, then you've come to the right place. Insurance is what helps you out in all kinds of different situations. As a new business owner, you may have already taken the liberty to acquire a few policies for yourself. While having a few personal policies in effect is great, your business needs them as well. That said, you might not know which policies you'll need to protect your business. Before we get into the actual policies, it's important to note that you don't have to purchase each one you come across. Some policies may not work for certain entrepreneurs. Not to mention, managing all those premiums can be financially taxing. In this post, we'll be discussing some of the best insurance policies for business owners.
Starting off, commercial property insurance covers a variety of property losses, including fire, water damage, burglary, and vandalism. This coverage allows you to replace the items in your business with the same quality as before the damage or theft. This type of insurance is typically a requirement from lenders when purchasing or refinancing commercial real estate. It protects your investment against loss due to theft or damage from natural disasters such as fires and floods. Furthermore, commercial property insurance can also cover liability should someone sustain an injury on your premises, like a slip and fall.
The next type of policy every entrepreneur needs is life insurance. Life insurance is a type of policy that pays out a death benefit to your beneficiaries upon your death. These are typically to provide for dependents in the event of the policyholder's death, such as children and spouses. Life insurance can also pay for funeral costs and other expenses to do with final arrangements after you pass away. The cost of these services can vary significantly depending on where you live and the amount of coverage you need. Despite being one of those policies you can buy and forget about, you still have to pay the premiums.
Sometimes, these premiums can be difficult to budget for thanks to the unpredictable nature of the rates of them. Interest rates function differently for each type of life insurance. You can, however, find more affordable and personal rates in one place online. Before taking out a life insurance policy, it's critical that you do your research. Life insurance isn't just a single policy; it's made up of many. The one we were talking about is known as a whole, or permanent, policy. Some entrepreneurs may find term policies more beneficial. A term policy is when you're given a set amount of funds, which gradually decreases as time goes on.
General liability insurance is one of the most important policies an entrepreneur can have. It's what covers you against claims related to bodily injury or property damage. Life is full of surprises, and some of them aren't always the most pleasant. In fact, many businesses end up getting a lawsuit from a person having an accident on your property.
If you live in an area where natural disasters happen more often than not, this policy is an absolute must-have. States such as California and Florida are just a few areas where natural disasters, like fires and floods, can occur. The same rings true for places that deals with frequent earthquakes. As the name implies, these events can literally destroy your business. However, should your business sustain heavy damage, this insurance can help cover the repair costs.
Key person insurance is one of the best insurance policies for entrepreneurs to have as it covers the loss of income and revenue caused by an executive’s death or disability for up to 5 years. More specifically, it protects against the financial consequences of an employee's death or disability, which can happen in any business at any time.