Getting your business up and running is exciting, challengingand hard work. You’re finally making money ? and you are thedriving force that is making your business grow. But have you taken care of the “What ifs”. Like ? “What if I get sick, how do I pay my bills” or “What if I have a fire, how do I keep my business running”. Simply put, the one thing you do not want is to have the business that you have labored so tirelessly on, hit a financial snag.
If you are a sole proprietor or a partnership ? both yourbusiness and personal liabilities are at risk. Do you thinkyou’re safe if you incorporate or have an LLC? Manyare misled into believing this is so, however, you too canbecome personally liable if you sign a personal guarantee ona loan, personally injure someone or act irresponsibility.
Asyou will see, owning business liability insurance can anddoes protects your business and personal life from financiaruin. My discussion here will be limited to Business Interruption,Overhead, Umbrella Liability and Liability Insurance ? explaining what these four types of insurance are, and what they can offer you and your business.
Business Interruption Insurance
Business Interruption Insurance helps to insure against anyeconomic losses that you may encounter if something shouldhappen to close down your business. For example, you havea fire in your corner of the house ? your business office.
Your home is covered for property damage ? thus, the rebuilding is covered, however, what about the lose income you’re losing while you rebuild? That’s where Business Interruption Insurance can come in to play.
There is one type of business insurance that you may want toconsider when your business is making a good profit, and that would be Overhead Insurance.
Overhead Insurancecovers rent, salaries, utilities, insurance premiums and/orinterest payments that are related to the business ? thistype of insurance would cover you in case of a majorillness or accident.
Umbrella Liability Insurance
Umbrella Liability Insurance is used for catastrophiclosses. This will protect you in the event someonewants to sue you. An umbrella policy will upgradeyour basic auto, homeowners or business insuranceto cover these unforeseen events.
If you have people coming to your home-based business,than liability insurance may be something you shouldlook into it. Liability insurance will cover you againstclaims made by others against you for injuries or damagesthat occurred on your property.
Yes, your homeowner’s policy includes some liabilityinsurance, but it may not cover you for liability claimscaused by your business.
To conclude, life offers many unexpected turns in theroad ? and basically, that’s what all insurance does ? itprotects you against those unexpected bumps in theroad ? and keeps you moving toward your goals with onlylimited stales. Personally, I believe I can deal with a small bump in the road better than a complete halt inbusiness. How about you?