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The Most Common Inclusions To Business Insurance Policies

Aug 1, 2008
Anyone who has ever started a business will understand the vital importance of getting business insurance as part of their start up plan. This essential aspect of management will help to protect company assets as well as help to secure the business finances from legal fees. With so many different types of business insurance out there it is easy to become confused when it comes to selecting the right policy that will cater for all of your company's needs. Hopefully the following information will help the uneducated understand the different policy inclusions available on the market today.

General liability.

This form of insurance covers businesses from a variety of different liability issues. Some of these issues include accidents on the premises, problems that can occur with company products and contractual liability concerned with employment law.

Property.

This covers the business premises; much like home insurance it covers the contents of the premises from occurrences such as fire, burglary and other natural disasters. This is extremely important for small businesses that often have a great deal of their finances tied up in equipment.

Worker's compensation.

This is a legally defined necessity that covers a business from worker's claims should an injury happen at work. As medical bills can be extremely costly this will protect company finances from long term compensation payments.

Errors and omissions.

This protects businesses from any instances of professional negligence. This could be failing to issue a guarantee policy with a product or external factors such as orders from suppliers falling through after payment has been made.

Business automobile.

Most company vehicles can be insured in the same way as private motor insurance is conducted. The purpose of gaining this policy inclusion is to obtain protection from claims either from staff members that have been injured in a work vehicle or the claims of anyone who may have been injured by a work vehicle. In addition, this inclusiion can cover vehicles from theft and accidents.

Marine.

This inclusion does not refer to boats but instead covers goods in transit by a number of different transportation methods. This can be extremely important if a company regularly ships valuable goods around the world.

Umbrella.

This is not the protection of rain equipment but refers to a form of cover that protects a wide variety of liability claims that are outside of the normal parameters of the general liability policy. This form of cover is usually advisable if your business conducts operations that could be considered extraordinary.

Business interruption.

This can protect a business should a period of shutdown occur due to an unforeseen event, such as fire or a flood. Normally this kind of cover will pay out for lost profits and where applicable any expenses that have continued.

Key person life.

This insurance is an added life policy that ensures that if a significant person in the business becomes disabled or dies the company is protected. In the event of such an occurrence, it protects staff members and the company from loss of income.

Travel.

This will normally cover those travelling on business from a variety of ailments and occurrences; this can occur to foreign travel or domestic.

Hopefully this brief breakdown of the most common forms of business insurance will help owners and managers understand their options when signing up for a policy. Deciding which of these are most important for your type of company is the most important decision. Once this decision has been made, you should have suitable cover for all aspects of your company operations.
About the Author
Financial expert Thomas Pretty looks into the different forms of business insurance and how these can relate to companies specifically.
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