Specific business insurance requirements can only be covered when associations referred to as insurable interest are in existence. Insurable interest is a legal model that defends against profiteering in situations where there was no real involvement. This kind of association must be in existence at the time when the property or personal insurance is bought. Let’s look at the five most common business insurance types.
- Property Insurance
This type of insurance covers any property that will require to be replaced as a result of loss or damage. These kinds of properties could include manufacturing equipment, inventory, and the business facility.
- Liability Insurance
This is the type of business insurance that covers losses which could result from claims made by your customers because of financial or physical injuries. If you want to be prepared for your customers taking you to the court, then you should definitely get Liability Insurance.
- Business Interruption Insurance
Business interruption insurance provides protection for the business owners against the loss of profits because of unexpected temporary shutdown.
- Key Person Insurance
This unique type of insurance type provides protection against the possible loss of business income that could happen when a person (or people) whose contribution is critical to the operation of the business is no longer available.
- Life Insurance
Business life insurance type provides coverage for the owner(s) with the required capital to buy a deceased owner’s stake in the business.
Every little or big decision matters in a professional business company. Every employee and every business partner can make a huge impact on any business, they will either save that company money or juice that company’s money to the last penny. It is very important for any small business owner to pay attention to all of these types of business insurance types mentioned above.