The aim of starting any business is to make a profit. While doing business, the company is bound to get losses. An effective entrepreneur is one who will be able to grow his business according to the organization’s goals and prepare forecasts that will cover losses, risks and uncertainties. One of the ways to do this is having a business insurance cover. This insurance is so important in any business because it offers protection from losses such as hazards at the work place caused by faulty machines and fires, employee injuries, lawsuits and death. If a business was to pay for such losses using its resources, it might experience bankruptcy.
To ensure that business insurance firms adhere to business ethics and principles, the Government regulates their policies so that they can benefit both parties. The essence of having a business insurance Long Beach cover is to transfer the risks of a business to the insurance company so that it can be protected from any loss. The process begins with a contract between both parties where the business agrees to pay a certain amount to cover for a specific risk, known as a premium to the insurer. When the business experiences such a risk, the insurance company will compensate the damage according to the provisions of the contract.
There are many types of business insurance policies. Most businesses will take mandatory insurance policies depending on their activities but others are usually optional. The various types of insurance policies include:
Business expense insurance. This type of insurance covers for future disabilities of the owner especially in a sole proprietorship in the event that he is unable to work. This cover will cater for his upkeep in a few years in order to give him or her time to recover and go back to work, merge or close his business indefinitely.
General liability. This cover provides for protection when there are harmful products, negligence, property damage and injuries experienced at the work place. When the business suffers a lawsuit either as a result of employee injuries, this insurance will cover for legal fees, medical care and other costs stipulated in the agreement.
Commercial property damage. This compensates damages that are as a result of fire, theft, vandalism, catastrophic floods and also earthquakes. Property insurance can also include company furniture, machines, money and inventory.
Group insurance. Most businesses provide insurance for their employees as a provision that is required by Government and trade unions especially those that are involved in construction. A general group insurance cover will include dental, vision, health and disabilities cover for employees.
Buy-sell insurance. This insurance gives the business an opportunity to expand their operations. This agreement will also fund for business mergers.
