Business insurance can provide financial protection against a wide variety of risks.  If you own or participate in the management of a business, you are very aware of these risks.  Potential issues with employees, customers, suppliers, and countless other individuals makes business insurance essential.

Knowing what your business needs are is an important first step.  There are laws and regulations that govern requirements such as workers coverage and liability insurance. 

You also need to know what you need to cover under a policy of your own versus what may be covered by other policies.  For example, if you business is in a strip mall and there is a fire, is your building covered by the mall's owner?

What about your equipment?  There are many details that must be considered.  If you need clarification on what type of policies are required for your business, consult a business advisor or an attorney.

Business insurance coverage types

There are several different types of business insurance.  It's important to know the difference between all the different types of coverage. 

The type of insurance you need is determined by the type of business you have and what specific needs specific businesses have. 

Some common business insurance categories are property insurance, liability insurance, workers compensation insurance, umbrella policies, and business owner policies.

For businesses that have property and supplies or stock, property insurance is a very important business insurance option.  Property insurance is designed to cover items such as the physical building, stock, and equipment.  This can include damage caused by fire, and other natural disasters as well as accidents such as vehicular damage or vandalism.  This type of coverage has several purchase options such as a set dollar amount coverage or actual value coverage.

Part 2