Friday, May 2, 2008

Small Business Insurance - Is Your Company Under Insured?

Many people who study small business report that 80% of small businesses do not carry enough insurance to protect themselves. One mishap can be a disaster to an underinsured business, and can ruin or setback all of the hard work that the owners and employees have put in to develop, grow, and maintain the venture.A small company with one location can be very vulnerable to losses caused by storms or vandalism, and are seldom in a good position to replace their equipment and supplies. One flood or fire could take out computers, machines, or account records. Small companies do not usually have replacements at their fingertips, and without insurance coverage, the business could be ruined financially. Beyond the danger of natural damage caused by fire or storm, intentional theft or vandalism could be even worse because it could target a company right where is the weakest.Beyond damage, liability can be underestimated by many small business owners. However, just one injured employee or customer, who files a suit, can ruin a small business. Even if the company is not at fault, the cost of a legal defense may be so huge that it can cause losses and layoffs. If your business provides professional service, rather than physical products, you may need to consider a type of professional liability insurance.Every business should consider the need for three basic types of coverage. The first is property insurance which will cover a building, equipment, and supplies against manmade and natural damage. Secondly, a business should consider liability insurance. One type of liability insurance may cover a business against professional errors, and that is usually purchased by lawyers, accountants, and insurance agents. Another type of liability insurance will protect a company against any injury caused by its products, and that would be purchased by a manufacturer. Also, workers compensation insurance is another type of insurance that will protect a business owner from employee injury claims.Compare Commercial Insurance Rates and learn about Types of Business Insurance You Needhttp://www.minibiz.usArticle Source:

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