7 Types of Business Insurance and Why You Need Them

From the day you start a business you become exposed to certain risks. One untoward event, catastrophe or lawsuit can actually wipe out a business before it even gets off the ground. This needn’t happen, however, if you have the proper type and amount of business insurance in place. By taking care of your business insurance needs as soon as possible you can avoid these potential financial losses associated with accidents, injuries or other catastrophic events.

Available Types of Business Insurance You May Need

Business insurance isn't a one-size-fits-all proposition, so it’s important to consult an insurance professional when determining exactly what type of coverage is best for your business needs. Here are some of the most important types of coverage you’ll want to consider:

1.  General Liability Insurance is something every business requires, even small, one-person home-based concerns. General liability coverage protects against legal problems arising from injuries, accidents or negligence claims. This may include claims for payment resulting from bodily injuries and their associated medical expenses, property damages and the cost of defending against lawsuits and judgements. It also includes coverage against libel/slander lawsuits.
2.  Product Liability Insurance is for businesses that manufacture, distribute or sell products, either wholesale or retail. It provides protection against financial losses resulting from claims of product defects that cause bodily harm, injuries or property loss.
3.  Professional Liability Insurance is primarily for businesses providing services to their customers. Also known as E&O (errors and omissions) insurance, this coverage protects against malpractice, negligence and errors in the provision of those services.
4.  Commercial Property Insurance for businesses is similar to homeowners insurance for your domicile, with slight variations. It protects you from loss or damage to your property from a wide range of perils such as fire, theft, vandalism, hail, wind storms and civil disobedience. It may also include lost income benefits. Property insurance may be all-risk, meaning they cover all perils except those specifically excluded or it may be peril specific, covering only those losses specifically listed in the insurance policy.

Other types of business insurance you'll want to consider include:

• Vehicle Insurance
• Workers Compensation Insurance
• Business Interruption Insurance

If you own a home-based business you may want to consider home-based business insurance.  Contrary to what you may believe, your homeowner’s insurance likely does little to cover your home-based business. Depending on the risks, however, riders to your homeowner’s coverage could provide the protection you need.     

Does Renters Insurance Cover Floods?

While almost all North Carolina homeowners have homeowner’s insurance, a surprisingly smaller percentage of home renters protect themselves from financial loss by purchasing renters insurance. There are a number of reasons for this, ranging from the belief of many renters that their possessions don’t amount to a great enough value to justify insurance coverage to the assumption that the purchase of renters insurance would be too cost prohibitive. Both of these ideas may be unfounded.

Why Renters Insurance?

On the subject of value, even if you’re living in a totally furnished rental home or apartment, chances are good that your personal possessions would still be valued in the thousands. This includes all your clothing, bedding, kitchenware, electronics, artwork, jewelry and even your food. If your dwelling was burned to the ground, how much would it cost to replace everything of yours that would be lost? Your landlord’s dwelling insurance isn’t meant to cover the loss of your things.

As an example, if a freezer you use, owned by the landlord, has just been stocked with hundreds of dollars of food and suddenly breaks down, ruining the food inside, that’s your loss. Or, if you live in a second floor apartment and the bathtub overflows, ruining the ceiling and property of the renter living beneath you, that’s your responsibility. Both of these incidents would likely be covered by a quality insurance policy for renters.

If an individual visiting your rented home suffers a slip-and-fall injury and ends up suing you for negligence you may be faced with lawyer’s fees, medical costs and more. Renters insurance would cover this too. Your landlord’s property insurance probably won’t, leaving you, if uninsured, basically up the creek with no paddle.

On the question of renters insurance being too expensive, most policies cost far less than you might think. Typical quality renter’s coverage from a top-name insurance provider will generally cost only about 40-50 cents a day, or about $15 (or less) per month.

What Renters Insurance Won’t Cover

Two important perils not covered by a renter’s policy are protection from losses resulting from earthquake or flood. These are specialty type coverages that must be purchased separately from a regular policy. Flood insurance is available through the National Flood Insurance Program. Since certain locations in the Triad region are susceptible to flooding at certain times of the year, flood insurance may be something you should consider.

How to Rewrite Your Car Insurance Policy to Save Money

Car insurance is something every driver using public roads in North Carolina is required to have according to state law. How much you pay for your coverage, however, can vary widely, depending on numerous factors. The car insurance industry is extremely competitive, especially in this age of instant Internet quotes, and policies can be somewhat confusing to understand. Having a trusted insurance agent to advise you on what’s best for your specific personal car insurance needs can help you in finding the best coverage for the best price and from an established, dependable insurer. For those in the know, there are many ways you can rewrite your current car insurance policy and save some money at the same time. Consider these tips for lowering your auto insurance premium costs:

• It’s always a good idea to get several new insurance quotes when certain changes in your life occur since these may affect your risk profile and, therefore, your insurance rates. Such events may include attaining a certain age (such as age 25 or age 55), getting married, retiring, getting a new job (some occupations may bring a rate discount), moving to a new location or significantly shortening your daily driving commute.
• Maintaining a clean driving record with no accidents, moving violations or insurance claims may qualify you for a safety discount.
• Combining your car insurance policy with the same company that carries your homeowner’s and life insurance policies may give you a discount on your coverage rate.
• Increasing the deductible amount on your policy will certainly lower your premium rate. Paying your premium annually rather than in monthly installments should also provide you with a price break.
• Decreasing coverage on older cars will save you money. The rule of thumb says that if the premium amount you’re paying for your comprehensive/collision coverage is greater than 10% of your car’s value (check the Kelley Blue Book), you should probably drop that part of your policy coverage
• Many insurance companies factor in your credit scores when calculating premium rates. Maintain a good credit rating and, according to statistics, you’ll likely have fewer accidents!

There are plenty of other discounts available from various car insurance companies, most of which you may never know about unless you ask. Students with good grades or driver’s education credit, for example, may also qualify. Be sure to ask your agent.