Self-employed small business is an entity where an insured business covers the liability of assets for the whole business. Liability insurance is an important financial protection step adopted by many businesses to make sure that they are able to continue running even if certain losses take place. Such financial loss could come from fire, accidents, or even bankruptcy. This insurance helps the business recover its losses and it covers any damage caused to the assets of the company. It also makes sure that the customers of the business are not put at risk when filing a claim as well. With this, the self-employed person can get away from the worries related to his/her financial health.
Business insurance coverage generally takes different forms and each form has different requirements. In general, it covers liability, property damage and loss, theft, and interruption. Other policies cover such things like substitute cash payments, advertising expenses, lawsuits, litigation support, legal fees, and other miscellaneous items. A policy may also include options like the ability to recover lost time, additional capital, guarantees and warranties.
Liability coverage basically means that an insured business’ assets are protected in the event that a customer or client gets injured or suffers damage due to the negligence of the business owner. If the company’s equipment or merchandise causes damage, liability coverage will pay the cost of the damages. Commonly, this is termed “punitive damages”. An insurance policy may also include additional options like providing coverage against slander, malicious prosecution, past damages, and intentional misconduct. If a customer or client files a claim against the company, the insurer will have the authority to recover any punitive damages that were awarded in the lawsuit.
The second type of protection is a surety bond. A surety bond ensures that the insured business owner will be financially protected if the insured business owner is sued for any reason. For example, if a customer or client files a claim against the business, the surety bond requires that the business owner obtain money from a separate account in order to cover any legal costs and other expenses related to the claim. Surety bonds can be revoked if the owner violated the terms of the bond.
Another type of protection is commercial insurance policies that are used to protect against property or product losses. These policies typically provide coverage for both physical damage and non-physical losses. Common commercial insurance policies provide coverage for losses from natural disasters, such as fire, hurricanes, tornadoes, earthquakes, snow, and flooding. They may also cover losses from explosions, terrorism, and riots. Although most of these policies will not cover losses from libel, slander, or adultery, these coverages are common and can save businesses money on their legal costs.
As an insured business, you want to be confident that your insurance premiums are affordable. You can lower your premiums by following a few simple steps. Your insurance company may offer discounts or match or better rates with other insurance companies that you may be interested in doing business with.