What It Is:
Business insurance is a protection plan that is created between an insurance company and the proprietor of a business. The purpose of the plan is to protect the business from any number of negative situations. These situations can include employee injury, the inability to do business in a certain municipality, losses from investments and a changing of the guard.
Who It Is For:
Anyone who owns a business should have a business protection plan. This goes for people who own Fortune 500 companies and people who own their own independent contractor business. Depending on the industry that a business person is in, he or she may need to retain insurance for legal purposes. Having the appropriate kind of insurance is also a great investment if you are looking to do business with top vendors and suppliers in certain industries. Many of them will not do business with a company that does not have insurance or some kind of protection.
How It Works:
A business protection plan is created and customized based on the business that it is protecting. Depending on the individual points in that plan, the insurance company will pay out lump sums of money when a certain situation happens within the business. Usually, there is a deductible that will need to be met by the proprietor of the business. However, even this clause can be struck out depending on the nature of the agreement between the business and the insurance company.
Different Types Of Coverage In Existence:
Different kinds of business coverage packages are meant for different size businesses. For instance, the type of business protection that a Fortune 500 company has will be slightly different from the protection that your local plumber has.
There is one huge benefit of all business protection plans no matter what size business therefore. They all protect the proprietor of the business and his or her personal assets from collection in case of a judgment against the business.