Understanding Insurance Policies

3 Questions You Need To Ask While Getting Business Insurance

29 November 2016

Samantha Reynolds

If you are a small business owner, it is important that you get insurance for your company. Many people don't understand what business insurance entails, so they forgo it without understanding the risks of this decision. This is why it is important that you consider these things when starting your small business.

What Will Happen If You Get Sued?

Lawsuits are incredibly common and no one is exempt. There is always a chance that someone will sue you. This is why it is so important that you plan for the worst but hope for the best. You should always have things ready in case you are sued. When you get business insurance, you can purchase some liability insurance. This means that, if you your product is faulty and hurts someone, you have coverage. If you make a mistake and because of it someone loses a great deal of money, you could access your policy. The type of business you run will determine the amount and type of liability insurance you should purchase. Talk to the insurance agent about the different options and what is best for you.

What Happens If One Of The Partner Dies?

Although it is not something you likely want to think about, you need to consider the possibility that one of the partners passes away. If they die, what will happen to the business or to their family? For instance, if they put in money upfront for the business and then pass away, their family may ask that they get back their investment; do you have the capital right then and there to give it to them? Second, what will it do to the functioning of the business to lose a partner? Will you be able to continue or will the business be ruined if you no longer have their expertise? These are all things that business insurance can help you to manage. You can insure individuals, like a life insurance policy, so that if someone dies, the business doesn't fail.

Do You Have Coverage Over The Building and Supplies?

There is a good chance that you have many supplies, you are renting a building, and there are property investments associated with your business. When you get business insurance, it can help to insure the property and anything else that you have purchased.

By asking yourself these questions, you can get the right business insurance for your situation and ensure that you are protected. Contact an insurance agent to learn more.

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