Small Business > Business Models & Organizational Structure > Organizations Why Should an Organization Have Insurance? General liability insurance can help protect you if accidents happen at your business. General liability insurance can help protect you if accidents happen at your business. Related Articles The Negative Effect of Social Media on Society and Individuals How to Open an Online Clothing Boutique How Much Does Television Advertising Really Cost? How to Fix an iPhone 4S When It Says Connect to iTunes Five Positive Effects of Technology on Education How to Start a Clothing Business With Buying Wholesale Owning a business is risky in many ways, but you can help mitigate some of those risks by purchasing the proper insurance protection. Some insurance may be required, such as workers compensation coverage, while other types of insurance are options, such as general liability. However, they all work toward the same goal: to protect your business and your investment. General Liability Quotes Required Insurance You should carry some types of insurance because they are required. Many states require businesses to carry workers compensation insurance, which helps pay medical bills if your employees are hurt at work. For low-risk occupations, this may not be very expensive, but it can take a chunk out of your gross income for high-risk organizations, such as construction-related companies. If you have a mortgage on your building, you are likely required to carry a certain amount of insurance on the building.qqqawsayt Liability Insurance Although not normally required, several types of liability insurance help protect you in case of accidents on your property or lawsuits. General liability coverage helps cover you if you accidentally damage someone elses property or if someone gets hurt on your property. For example, if youre a plumber and you ruin a clients carpet while trying to fix some pipes, your general liability coverage might pay to replace the carpet. Or, if someone slips on the freshly mopped floor in your lobby and gets hurt, general liability can help pay for the persons medical bills. Professional liability insurance is helpful for organizations that offer advice to other people, such as lawyers and accountants, in case clients sue claiming you made an error or omitted important information. Directors and officers insurance helps protect your board of directors or other leadership group from liability, particularly financial liability, if your business is sued or fails to pay its financial obligations. Related Reading: What Is a Captive Organization? Automobile Coverage Just like with your personal vehicle, you should insure any vehicles used by your business. Even if you can afford to replace the vehicle, you should carry liability insurance to cover the costs of repairing someone elses vehicle in case of an accident. Automobile insurance usually covers the medical expenses if someone is injured in an accident as well — these medical bills can be pricey, so make sure your vehicles are covered. Business Interruption Insurance Whether you run a home-based business or a larger storefront, business interruption insurance help you stay in business in the event of a catastrophe. If youre robbed and lose all your equipment and inventory, business interruption insurance can pay you for your lost sales and revenue. Your building or home insurance may pay for damages and equipment, but you need something to keep money coming in while you replace your equipment and restock your inventory. Business interruption insurance is also helpful if you work with perishable products, such as flowers or food. If your power goes out and turns off your coolers, business interruption insurance can pay you for your cost of the items that spoil or become unusable — something the power company and your building insurance wont do.
Posted on: Wed, 08 Oct 2014 05:12:54 +0000
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