Starting a Business
Insurance for the Business and Its Employees
A new business owner should understand the insurance policies that are available for both the business and its employees. It is important to analyze the risk exposure before determining the type and amount of insurance that will best protect the new investment. In addition, laws or contractual agreements may require certain types of policies. An attorney from Spinella Owings & Shaia, P.C. in Richmond, Virginia, can assist you with your questions today.
Insurance for the Business
The following are types of insurance that a new business owner will want to explore:
Commercial multi-peril policy or business owner's policy: A comprehensive commercial policy that covers numerous risks for business owners.
General liability insurance: Provides coverage in case of injury to a third person or damage to another's property.
Property insurance: Protects against loss or damage of business property due to fire, vandalism and other destruction.
Malpractice or professional liability insurance: In the case of a claim of negligence, error or omission, indemnifies the business; required in some states and industries.
Product liability insurance: Insurance that protects a manufacturer, wholesaler or seller of a product in case of liability due to that product's causing harm to a consumer.
Business interruption insurance: Protect the business in case of loss when ongoing business is interrupted by damage to or loss of property.
Business vehicle policy: Insures vehicles used primarily for business purposes; if employees use their own vehicles for work, additional coverage may be necessary.
Umbrella insurance: Supplemental insurance that extends or amplifies other coverage.
While it is vital to secure proper insurance for a new business, the owner will also want to ensure that he or she does not purchase too much insurance. The best insurance package will offer sufficient coverage and be cost effective.
Insurance for the Business Owner and the Employees
A new business owner should also be aware of the following types of insurance, which are designed to protect both employees and owners:
Workers' compensation insurance: Most states require workers' compensation insurance; it covers employees in case of work-related accidents.
Health insurance: In addition to individual health insurance policies, many businesses offer employees the option of being part of a group insurance plan.
Life insurance: This type of policy is payable upon the death of the insured.
Disability insurance: Disability insurance covers a business owner or an employee in case working is impossible due to illness or injury; it typically pays out a certain percentage of the insured's income.
Key-employee or "key-man" insurance: Protects the business in case a key employee dies or is unable to work; it may cover the income that the key employee generated or the cost of filling the functions the key person performed.
Contact an Attorney
Insurance is very important for the protection of your new business investment. An attorney from Spinella Owings & Shaia, P.C. in Richmond, Virginia, can assist you in deciding which insurance will best suit your business.
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