Jan 12 2008
Insurance For Small Business
In addition to his lawyer and accountant, another professional to be incorporated during the process of establishing the new company will be your insurance agent. It may be helpful to have an agent to handle your needs for insurance. The market offers insurance policies specifically designed to provide coverage to small businesses and that in one package will cover your insurance needs.
Insurance will be important not only for yourself but also for its other business relationships. For example, if you choose to lease office, the owner of the property usually require a certificate of insurance or that he named as additional insured on your policy to ensure that your company will not disappear overnight in case of an accident.
Some of the risks to be covered with insurance are:
Insurance against damage to property of company
Such insurance should include comprehensive coverage to protect against a variety of risks. Your insurance policy should include:
* Buildings. Coverage is required if you own the building where your business is located. If the lessee of the property, your landlord can give this coverage.
* The property of the company include its tables, desks, chairs and equipment. Also, you will want to include the improvements made in the property leased. An example of this would be a division of environments that builds inside the building, an exhibition or event as an inn that you install in the reception area for customers.
* Loss of income.
* Earthquakes.
Flood * (optional).
Remember that an all-risk policy can cover all your equipment, which includes the computer hardware and software, plus its records of value. A properly written policy will include loss of income resulting from interruption, as well as other risks that could disrupt its operations temporarily.
Liability insurance
A liability insurance against all risks aims to provide coverage to third parties for:
* Damages for personal injury and advertising
* Liability for fire, which usually is mandatory if you lease susinstalaciones. This gives you coverage if their negligence results in damage or loss affecting the property of their landlord. For example, left running by mistake a small electric stove and goes home at the end of the day. At night, the stove has a short circuit and start a fire, where fire and smoke damage to the property generates. In this case, the loss is caused by the negligent act of leaving the stove turned on. This is where the fire insurance protects your investment.
* Products and completed operations
* Medical expenses or payments
* Overall responsibility for their facilities. The best example is the usual risk of tripping due to a damaged carpet, causing bodily harm. ”
In some cases, some policies exclude coverage for products and completed operations and / or personal injury and advertising injury, depending on the services provided by your company. In these cases must have a policy of professional liability, professional malpractice or errors and omissions specific to your business that provides coverage for errors and omissions that may result in legal action against your company. This applies especially to professions subject to a greater degree of care or standards, for example, lawyers, engineering consultants, insurance agents, brokers, real estate, doctors and dentists.
Insurance against employment accidents
If your business has employees, labor accident insurance is required. In general, the needs of a company that began its operations can be covered by state compensation fund. Under the company grows, you can “explore the market in search of better prices for coverage. Moreover, some insurers offer additional accidents such as risk management and loss control services that may be beneficial for your business. These services are usually very helpful because they reduce the costs of claims in the long term. Do not confuse risk management with its responsibility towards risk. The insurance company should assume 100% of the risk under the insurance against industrial accidents.
Other insurance
* Car insurance for business vehicles. (civil liability, all risks, accidents and uninsured motorists / Underinsurance).
* Health insurance plans tailored to the size of your business (benefit: this coverage is an advantage when recruiting good employees).
Insurance surplus
Are the limits of liability available above the ceiling that can give your insurer and may do so in two ways:
* In general, the additional coverage for risks not covered can be added for an additional cost to the policyholder on the basis of respective amounts of USD 500,000 to USD 1 million, sometimes up to about USD 5 million.
* Buy what is called a “commercial insurance coverage, which provides additional coverage to most of the basic policies, including trade policies, trade policies and institutional policies for cars against accidents.
ALWAYS REMEMBER THAT: The insurer you choose can offer lower limits, which is attractive from the standpoint of the premiums payable. However, a smart businessman should liability limits of at least USD 1 million. Typically, the cost is reasonable and appropriate, considering the difficult business environment of today.
* Example: You, the employer suffers an accident in which it is determined that you committed a foul. Moreover, due to the accident the person concerned is paraplegic. This type of accident can result in a multimillion-dollar ruling against him.
Liability coverage for employment practices
Insurance employment practices liability coverage is starting to become popular among businesses and provides bonuses of over USD 2,000 for each million dollars of coverage. Although it is highly unlikely that casualties on labor practices in small businesses, the threat of dismissal or incorrect judgments of sexual harassment, which are excluded from most commercial policies, increases under the company grows.
As mentioned above, if you have a partner, its repurchase agreement may be funded by life insurance in case of death of a partner. The amount of this insurance may increase as your business grows.
Suggested activities:
* Before starting operations, gather references and recommendations for lawyers, accountants and insurance agents so you can choose the most appropriate professional advisors well in advance at the time they need their services. It is likely that the initial answer your questions at no charge to see that it is considering incorporating them into their professional team.
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