Economic instability has made entrepreneurship a great risk in itself. In this scenario, business insurance comes as a boon since it provides protection to the different risk factors in any enterprise. Yet, many entrepreneurs neglect purchase of business insurance at the start of their venture. This is because they are unaware of the consequences of running a company without any insurance.
A business enterprise is a culmination of many contractual dealings involving financial transactions and regular trading. Even a little mishap in any of the many financial processes, has a negative impact on the company’s overall performance. Added to this, is the probability of occurrences like natural disasters and terrorist activities, which can lead to complete closure of the enterprise.
The best way to be prepared for any such event would be through purchase of a comprehensive insurance package. Similar to automobile and home insurance, business insurance packages come in a combination of basic coverage like property, casualty, and liability coverage, along with extra coverage for life and disability, worker’s compensation, health, and the like. Let us take a quick look into the common types of coverage that business insurance policies offer today.
Property Coverage
The first thing that comes to the mind of businessmen is securing the property owned by the business. This solely relates to the main location of the company from where it operates. Property venues that are not owned by the same businessmen but are under their control are also covered even though they might not have been mentioned in the initial insurance deal.
Offers are usually risk specific, and compensation is provided only when the loss occurs due to the risk that the package provides for. For example, fire insurance providers will pay you only if there has been damage due to a fire incident, not by any other natural calamity like a flood or tornado.
Casualty Coverage
This covers any major loss or damage to the business itself. Although many packages that club Property coverage and Casualty coverage are provided by insurance companies, casualty coverage is different from property coverage in a major way. Property coverage concentrates on risks that affect the location of the business.
Casualty coverage concentrates on any kind of business interruption or continuation issues. These could be caused by natural disasters or terrorist attacks, that effect the business, more than affecting the property of the company. Thus, in order to avoid complete bankruptcy every business man must go for this coverage.
Liability Coverage
This is the third most important type of coverage that your insurance package must possess. Trading and contractual deals may experience sudden closure and loss if there is any negligence on part of the employees. At this juncture, it becomes important for you to recover the loss as soon as possible in order to invest further. Liability coverage helps you attain the same and therefore, prevents sudden crash in the finances of your enterprise.
Workers Compensation is a major coverage provided in most packages and is mandatory for large scale enterprises that involve many employees. Thus, a little bit of research can get you the best packages in business insurance. Ann Arbor, Plymouth, and Redford area entrepreneurs need to consider all the risks that can possibly affect the smooth running of their business and procure suitable coverage.
Business Insurance Ann Arbor – If you are on the look-out for the best provider of business insurance, Ann Arbor may be just the right place for you to be in, since America One Michigan Insurance Group offers comprehensive insurance packages to its clients in the area.
