Insurance companies which sell business insurance offer different types of insurance policies .These different policies provide different types of risk coverage. The businessman has to decide on varied types of risk coverage.

The types of insurance that can be done for a small business are as follows:

• Fire Insurance By doing Fire Insurance you can avoid loss which can be generated from any explosion at your business enterprise. This type of insurance can be of three kinds. In case of any loss due to explosion 1) It may pay the exact cash value of the property at the time of loss.2) It may repair the property with materials of the same quality that you have used.3) It may take the property and reimburse you for the loss. One can go for fire Insurance of a property even if he doesn’t own the property. He can insure the property if he holds a mortgage on the property.

   

• Liability Insurance This type of insurance gives protection to the legal responsibility of the company. Business operations of the small business enterprise may cause bodily injury or property damage due to production of defective products or due to errors in service provided. This kind of problems can be tackled easily if Liability insurance is there.

   
• Business interruption Insurance Business Interruption Insurance is as vital as Fire Insurance. If due to fire or any other reason business activities of the tiny enterprise come to a halt, the Business Interruption Insurance compensates the profit that the small businessman would have earned if the disaster had not occurred. This Insurance also pays for the expenses that would continue to take place even after the business activities are stopped. The salaries of key employees, electricity bills, taxes, interest payments to banks are such expenses which are covered by Business Interruption Insurance. This kind of policy also provides coverage to the amount that is spent for reopening of the business after any disaster.

   

• Automobile insurance If an employee or a contractor uses a vehicle on the behalf of the business owner then the business owner is legally responsible even if he doesn’t own the vehicle. So, Automobile Insurance is very much important for a small business owner. Automobile insurance also cover medical claims in case of an automobile accident.

   

• Workers Compensation Insurance It is an employer’s responsibility that he ensures the safety of his employees. He has to provide safe workplace and safe equipments to his employees and has to remind about existing dangers. If the business owner fails to do that then he is legally liable for any damages caused to the employees and he has to pay compensation to employees. So, in such cases Worker’ Compensation Insurance is important.

   

• Crime Insurance Crime insurance gives coverage to the loss incurred by a burglary. This insurance pays for the loss of money, inventory and securities due to the robbery and also compensates for the damage of the property in course of burglary. But there has to be enough evidences of burglary to get the benefit. This Insurance also cover theft by the own employees of the small business enterprise.

   

• Rental Insurance If the tiny business enterprise works from a rented or leased place and if due to fire or any other peril it becomes unusable, but you have to pay the rent then the Rental Insurance will pay the rent on behalf of the small business owner.

   

• Insurance with Employee Benefit coverage This kind of Insurance can again be of different types. These are Group Life Insurance, Group Health Insurance, Employee Disability Insurance and Key Employee Insurance. Key Employee Insurance gives protection against the loss incurred by the death of a valuable employer or partner. It is generally observed that small business owners go for the policy package which includes Fire Insurance, Liability Insurance, Business Interruption Insurance. It is the large business enterprises who go for bigger packages and customizes their policies to meet their special requirement.

  One type of Business Insurance here needs to be mentioned is Business Overhead Expense Disability Insurance. It is specially designed for the small businesses which have small number of employees. This insurance pays the overhead expenses of the business if the business owner becomes disabled. This insurance gives a wide policy coverage which includes:

  • Rent
  • Interest Payments
  • Taxes on business property location
  • Salaries of Permanent employees
  • Equipment maintenance
  • Depreciation of equipments
  • Insurance premiums
  • Accounting fees
  • Professional memberships
  • Postage and stationary