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Keep it Simple: Business Policies Cover Four Things


When considering what types of policies your business needs, it can quickly become very confusing to keep the terms straight. An easy way around this dilemma is to keep in mind that all business insurance and all policy types cover one of four things: property, liability, people or income.

Property: The property used in your business such as the structure you do business in or the vehicles used in your business need to be protected. Property and Casualty policies protect property.

Liability: No one is perfect, your business may make a mistake and, especially if your business is open to the public, there is always the chance your business will be held liable for an injury or error. Liability policies protect against being held liable for an error or injury.

People: At the heart of every business are its people. You and your officers, managers and employees are the company's greatest assets and must be protected. People are protected by workers compensation policies, health and life insurance policies.

Income: Without income the business does not survive. In the event of a catastrophe, a business interruptionpolicy can provide income or allow your business to be set up in a temporary location to earn income.

By preparing a list of property, potential liabilities, people and income categories for your business you will be able to wade through most policy descriptions and get a good overall sense of what types of policies you will need.

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