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Just as homeowners need insurance to protect their property, business owners need coverage to shield them from financial loss. The term "business insurance" is used to describe all of the different types of indemnification companies can purchase from providers. Because all companies have different risks associated with operations, they require different types and amounts of protection. In this article, we will review the most common types of business insurance. Property & Casualty As its name suggests, property insurance covers the actual physical location of a business from things like fire, flood, earthquake, and theft. It must be noted, however, that some exclusions may apply based on location. For example, if your office is in a flood-prone area, you may be expected to purchase a separate flood policy. Though it is often grouped together with property protection, casualty shields owners from loss and damage to assets that occur during regular operations. Commercial Auto If your business has a vehicle, it must be insured under a commercial auto policy. Many new owners make the mistake of adding vehicles used for commercial purposes to their personal auto policy. Unfortunately, your provider will not honor any claim for a car or truck that is used for business unless you pay for commercial coverage. Failure to do so could result in fines, lawsuits, and suspension of driving privileges should something happen to an improperly insured vehicle. Liability Most companies get sued at one time or another. When a lawsuit is filed against you, liability will cover all or some of the costs associated with settling the dispute. Because some companies engage in riskier operations than others, the amount of protection your firm needs should be based on these risks. For example, a construction company typically carries significantly more liability coverage than a local book shop, since the risk that someone will be injured in construction is much higher. Product Liability If your company sells a product, any product, it must carry product liability coverage. Once again, the amount of protection your company needs depends on the dangers associated with the product. For example, a manufacturer of chainsaws would obviously need more product liability coverage than a maker of digital wristwatches. Health Insurance Most workers in America get their health insurance through their employers. As such, it is a form of business coverage that must be obtained by bosses. Workers' Compensation It doesn't matter if your company mines coal or prepares peoples' tax returns, you must, by law, carry workers' compensation insurance if you have employees. Failure to do so could result in heavy fines and huge lawsuits. Workers' comp protects employees when they are injured on the job. It doesn't matter if they were hurt changing a light bulb or mounting a scaffold, the coverage kicks in as soon as someone gets hurt at work. Although there are many other types of business insurance available to employers, those above are the most common for the average business. When looking for business insurance, West Bloomfield residents visit the Phil Klein Insurance Group. Learn more at http://www.philkleininsurance.com/business/default.aspx.
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