Jumat, 02 Maret 2012

Home Business Insurance Cover Protects Owners

When we start out in business we are so focused on getting the business up and running and dealing with all the new responsibilities that it is easy to forget that if you are going to run a business you need to look at some insurance covers.
There are several insurances that relate to businesses:

• Asset insurance
• Vehicle insurance
• Errors and omissions liability
• Public liability
• Loss of income

Different companies have different names for these insurances as they are wont to do, but the cover is very similar. In saying that, it is important that you are getting the cover that you think you are getting. In other words, read the fine print and make sure that you are covered for what you are paying for and not what the insurance company in their wisdom only wants to pay out on.

Asset Insurance

This is not a difficult one to understand. If you have expensive equipment in your business then you most likely will want to cover it for theft and possibly damage. Even if the equipment is not expensive, if it is essential to the business it is worth covering it. This insurance will cover the assets of your business, including the equipment and office furniture etc.

Vehicle Insurance

This insurance can be a tricky one for a small business owner and you may need to check out how this works with your insurance company because it will come down to ownership and usage. You may need to talk to your accountant about this one too so that you are getting the full benefit of tax deductions.

Errors and Omissions Liability

This particular insurance relates to a business where forms and contracts are taken out, such as a real estate agent working from home, a financial consultant, draftsperson or similar, where legal documentation is involved.

Public Liability Insurance

A business owner should look at public liability insurance (or general liability insurance, or commercial general liability insurance). This insurance covers a business owner for such things as a customer accident at the premises, or any other bodily harm caused at the premises or by a product made by the business. Do check the details of this insurance and where you are covered, for example, if you take your products to a fair or fete and someone trips over your stall table.

Loss Of Income Insurance

This is a very good insurance to have for anyone who has financial commitments. You will need to assess when it would be suitable for you to take out this type of insurance.

As far as a one person business is concerned, if the owner should, for example have an accident or suffers an illness that incapacitates them for a period of time they can claim against their insurance to cover their income.

There are different levels with this insurance so what you receive, when it starts and how long for all will be determined by the level of cover taken out.
Finally, continue to evaluate your need for insurance as your business grows and if you change direction in your business. It is a tax deductible expense so make sure your income is not jeopardized by lack of cover.

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