Gaizer.com Tips for Business Start-ups

As a business owner, you are exposed to risks that should be managed and reduced. Insurance will cover you against most risks. Reasons to consider insurance if you are a sole proprietor include:

· Unlimited liability; your personal and business assets are at risk in case of court judgments.
· Will your business survive if the owner dies or is injured?
· Are you prepared for the general risks associated with business operations, such as vandalism, theft, collision, or injury

Types of Business Insurance At-A-Glance

Insurance That Covers the Business in Case of Injury or Death of the Owner

• Business Interruption Insurance protects against the loss of projected earnings due to a temporary shutdown of the business.
• Health Insurance protects the owner of a business in case of illness by providing payment for medical expenses.
• Disability Insurance helps if you become disabled and cannot work; this will cover your personal income.
• Business Life Insurance (Key Person) covers against the death of a participant in the business.

Insurance That Covers Against Business Operating Risks

• Property and Casualty Insurance covers property loss from fire, smoke, theft, collision, explosion, and vandalism.
• Auto Insurance protects against injury and the cost of repairing the vehicle.
• A Business Owner’s Policy covers multiple risks; this policy has restrictions regarding the size of the business.

Necessary Insurance If You Have Employees

• Unemployment Insurance is for workers who become unemployed through no fault of their own.
• Worker’s Compensation and Disability Insurance covers an employee’s loss of income and medical expenses through job-related accidents.
• Employment Practices Liability provides an employer with protection against lawsuits regarding employee treatment, such as sexual harassment and discrimination.