How to Find the Best Small Business Insurance

Liability, Property, Commercial Auto, Casualty Insurances Explained

Nov 1, 2009 Fleur Hupston

Small business owners need to carefully consider the risks and costs of the various types of business insurance available.

There are various insurance policies available to cover different aspects of small businesses. Of course, when starting out, a small business owner does not want to burden himself or herself with excessive insurance costs.

Property Insurance

Property insurance insures the business against loss or damage to the location of the business and to its contents. The actual cash value at the time of loss or the replacement value of specified items will be paid out.

There are various options available, discuss these with the insurer or broker who will be able to help with specific small business needs. Always be very careful to read over and understand exclusions written into the insurance contract.

Liability Insurance for Small Businesses

Liability insurance protects the business against claims made against it for negligence on the part of the business or its employees.

Liability insurance is a third-party insurance, which means that it covers damages occurring to a third-party, and does not pay the company. It covers injuries to a third-party resulting from an employee's or the company's action or non-action (such as ensuring that the work environment is safe) This includes auto accidents involving business vehicles and injuries involving non-employees on the business property.

Commercial Auto Insurance

Vehicles bought for and used by the employees of the business are not covered by the business owner's personal auto insurance policy. Commercial auto insurance insures against damage to vehicles and damage to others and can be customized to include auto liability, medical payments, comprehensive cover, collision cover, vehicles that are borrowed or rented, employees' cars when used for business purposes.

Worker's Compensation

Workman's compensation insures the employees against on-the-job injuries. Under workers' compensation, employers are required to make provisions sothat workers who are injured in accidents arising "out of or in the course of employment" receive medical treatment and receive payments ranging up to roughly two-thirds of their wages to replace lost income.There are numerous options for worker's compensation, depending on the state.

Casualty Insurance

Simply put, casualty insurance covers damages to property and to people. Casualty insurance which includes personal liability can be useful for business owners and some insurers lump property and casualty insurance together. Combined policies of property and casualty are often the best purchase a business owner can make.

Business Interruption Insurance

This type of insurance covers loss or damage to cash flow and profit of a business. If a business is unable to operate because of being interrupted for some reason, such as damage to machinery, the insurance company will pay out for a certain time to cover losses.

Life and Disability Insurance

Life and disability insurance protects the business against the death or disability of key employees. For example, if a partner dies the proceeds of the policy can be used by the other partner to buy out his or her share of the business.

Using the services of a qualified broker may be a good way to negotiate the maze of small business insurance. He or she will have specialized knowledge, will be able to get better rates and will be able to help out with additional advice and as the business grows and insurance needs change.

More Articles on Small Business Information for the Reader:

Ever wondered what budgeting software packages are available? How to Find Small Business Budgeting Software answers this question.

The article How to get Business Loans with Bad Credit examines how to go about getting a small business loan, even with a less-than-perfect credit history.

Small Business Debt Collection looks at how to go about choosing a reputable agency in recovering outstanding debts.

The copyright of the article How to Find the Best Small Business Insurance in Insurance is owned by Fleur Hupston. Permission to republish How to Find the Best Small Business Insurance in print or online must be granted by the author in writing.

Small Business Insurance Quotes	Getting Small Business Insurance Rates	Small Business Loans
Shop Online to Compare Insurance Rates	Small Business Insurance Policy